It’s a bruising start to the week for MENA equities as global markets recoiled from the Trump administration’s decision to impose a blanket 10% tariff on all imported goods, effective last Saturday. Slumping oil prices and mounting fears of a prolonged trade war sparked a broad-based selloff.

Tadawul takes the biggest hit on Aramco plunge: The Tadawul All Share Index (TASI) plunged 6.8% on Sunday — its worst session since May 2020. Saudi Aramco led the sharp losses, erasing more than USD 90 bn of market cap mid-session. Meanwhile, the Nomu parallel market also fell 6.50%.

Over in Egypt, the EGX30 lost 3.3% yesterday following a strong rally in recent months, with all the index’s components in the red.. The index is still up 3.02% YTD. Meanwhile, the UAE saw Dubai’s DFM falling 1.51%, and Abu Dhabi’s ADX slipping 0.76% on Friday. Investors will be watching for more downside during today's open, as markets had closed ahead of the official tariff rollout.

Elsewhere: Qatar’s QE Index dropped 4.23%, with almost every listed company closing in the red. Oman’s MSX30 fell 2.6%, while Jordan’s ASE dropped 2.1% amid its inclusion in the high-tariff group. Tunisia’s Tunindex edged down 0.13%, and Morocco’s MASI lost 0.15%.

IN CONTEXT- The base 10% tariff came into effect over the weekend, with steeper rates — up to 49% — on goods from 57 countries set to hit this Wednesday, 9 April. Much of the Arab world dodged the worst — including Saudi, the UAE, Egypt, Morocco, and others, who are only facing the 10% levy — others were less fortunate: Syria (41%), Iraq (39%), Libya (31%), Algeria (30%), Tunisia (28%), and Jordan (20%) are facing higher rates.

MARKETS THIS MORNING-

Asian markets are inching down this morning as the tariff shakedown continues to roil global markets. Hong Kong’s Hang Seng is down 9.3%, while Japan’s Nikkei is down 6.5% and the Shanghai Composite is close behind at 6.0%. Wall Street futures are also signalling more losses for the S&P 500, Nasdaq and Dow on market open.

TASI

11,077

-6.8% (YTD: -8.0%)

MSCI Tadawul 30

1,406

-6.6% (YTD: -6.9%)

NomuC

1,993

-6.5% (YTD: -9.0%)

USD : SAR (SAMA)

USD 3.75 Sell

USD 3.75 Buy

Interest rates

5.0% repo

4.5% reverse repo

EGX30

30,640

-3.3% (YTD: +3.0%)

ADX

9,187

-0.8% (YTD: -2.5%)

DFM

4,951

-1.5% (YTD: -4.0%)

S&P 500

5,074

-6.0% (YTD: -13.7%)

FTSE 100

8,055

-5.0% (YTD: -1.4%)

Euro Stoxx 50

4,878

-4.6% (YTD: -0.4%)

Brent crude

USD 65.58

-6.5%

Natural gas (Nymex)

USD 3.84

-7.3%

Gold

USD 3,035.40

-2.8%

BTC

USD 78,047

-6.7% (YTD: -16.4%)

THE CLOSING BELL: TADAWUL-

The TASI fell 6.8% yesterday on turnover of SAR 8.4 bn. The index is down 8.0% YTD.

In the green: Nama Chemicals (+0.5%).

In the red: Chemanol (-10.0%), Riyadh Cement (-10.0%) and Wafrah (-10.0%).

THE CLOSING BELL: NOMU-

The NomuC fell 6.5% yesterday on turnover of SAR 70 mn. The index is up 9.0% YTD.

In the green:Paper Home (+9.2%), Quara (+8.2%) and Multi Business (+3.5%).

In the red: Obeikan Glass (-19.6%), AME (-15.4%) and TMC (-14.7%).

CORPORATE ACTIONS-

Aljazira Takaful Taawuni’s board recommended distributing SAR 19.8 mn in dividends for FY 2024 at SAR 0.30 per share, according to a disclosure to Tadawul. The distribution date will be announced after receiving shareholders’ approval.

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