Most Gulf markets fall in early trade on weaker oil prices

Most stock markets in the Gulf dropped in early trade on Tuesday, tracking oil prices lower as weak service sector data revived worries over China’s fragile post-pandemic economy.

Crude prices - a key catalyst for the Gulf’s financial markets — fell 0.33% with Brent trading at $88.71 a barrel by 0700 GMT.

A private sector survey showed on Tuesday that China’s services activity expanded at the slowest pace in eight months in August as weak demand continued to dog the world’s second largest economy.

In Abu Dhabi, the benchmark stock index was off 0.8%, dragged down by a 2.5% loss in Abu Dhabi Islamic Bank and 1% decline in ADNOC Drilling.

First Abu Dhabi Bank, the largest lender in the United Arab Emirates, slumped 2.4%.

In Qatar, the benchmark fell 0.5%, with Qatar Islamic Bank sliding 1.3% and the Gulf’s largest lender Qatar National Bank shedding 1.1%.

Dubai’s benchmark stock index dropped 0.3% in early trade, weighed down by losses in most sectors, with Union Properties slipping 2.2% and the Emirates Integrated Telecommunications dropping 1.3%.

The emirate’s largest lender Emirates NBD and UAE’s biggest Sharia-compliant lender by assets, Dubai Islamic Bank, both lost 0.9%.

Saudi Arabia’s benchmark stock index fell 0.1% with Oil giant Aramco shedding 0.2% and Dr Sulaiman Al-Habib Medical Services sliding 0.4%.

The world’s largest Islamic Bank by assets, Al Rajhi Bank , lost 0.3% and Saudi Arabian Mining slipped 0.9%.