Major Gulf markets fall as financials dip

Major stock markets in the Gulf fell in early trade on Tuesday, hurt by losses in banking shares, with Qatari stocks falling the most.

Saudi Arabia's benchmark index dropped 0.3pc, with Al Rajhi Bank losing 0.4pc and petrochemical firm Saudi Basic Industries declining 0.8pc.

Dubai's main share index lost 0.2pc, hurt by a 1.4pc fall in its largest lender Emirates NBD Bank, while blue-chip developer Emaar Properties was down 0.8pc.

Emaar, which counts Dubai's state fund as a major shareholder, has halted new building work after a construction boom in recent years led to oversupply in the Gulf city, its chairman said on Monday.

It was not immediately clear when Emaar had ceased new building work, although Reuters had reported in April citing sources, that Emaar had suspended work on major new projects.

In Abu Dhabi, the index eased 0.1pc, with the country's largest lender First ABu Dhabi Bank falling 0.3pc.

The Qatari index fell 0.6pc, on track to extend losses from the previous session, as most of the stocks were in negative territory including Qatar National Bank, which retreated 1.4pc.

On Sunday, Qatari stocks had closed higher buoyed by hopes of a resolution to a dispute with some of the country's Arab neighbours.

Saudi Arabia, the United Arab Emirates, Bahrain and Egypt have imposed a diplomatic, trade and travel embargo on Qatar since mid-2017, accusing Doha of supporting terrorism. Qatar denies the charges and says the embargo aims to undermine its sovereignty.

The Saudi foreign minister on Friday said that resolution with Qatar seemed "within reach".