Gulf bourses drop on weaker oil prices; Saudi gains

Stock markets in the Gulf declined on Wednesday on falling oil prices as the surge in crude stockpiles in the United States weighed on trader sentiment, although the Saudi index bucked the trend.

Oil prices - a catalyst for the Gulf’s financial markets - dropped for a second day, after a report that crude stockpiles in the U.S., the world’s biggest oil user, surged and on signs major producers are unlikely to change their output policy at a technical meeting next week.

Brent fell 0.8% to $85.58 a barrel by 1250 GMT.

The Qatari benchmark index fell 0.7% to 9,958, its lowest level in more than one and a half months, with almost all sectors in negative territory.

Qatar National Bank, the region’s largest lender, lost 0.6% and Qatar Islamic Bank slipped 1.9%.

In Abu Dhabi, the benchmark index slid for a third straight session and ended 0.5% lower, with Aldar Properties sliding 2.1% and First Abu Dhabi Bank, the UAE’s largest lender, falling 1.8%.

Among other losers, Abu Dhabi Islamic Bank and Abu Dhabi Commercial Bank, the UAE’s third-biggest lender, lost 1.4% and 2.7%, respectively.

Gulf bourses drop ahead of US inflation data

Dubai’s benchmark index was down for a second straight session and ended 0.3% lower with most sectors in the red.

The blue-chip developer Emaar Properties lost 0.7% and Dubai Islamic Bank slid 0.5%, while Emirates NBD, the emirate’s largest lender, dropped 1.4%.

Saudi Arabia’s benchmark index was up 0.2%, after losing for three straight sessions, with most of its constituents posting gains.

Saudi Arabian Mining advanced 3% and Saudi Research and Media Group climbed 5.7%.

Among other gainers, Modern Mills Company soared 30% on its first day of trading, closing at 62.4 riyals against an IPO price of 48 riyals.

Outside the Gulf, Egypt’s blue-chip index dropped 2.9%, extending its losses to a second consecutive session, with all stocks in the red.

E-Finance for Digital slumped 11.6% and Commercial International Bank slipped 1.6%.

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 SAUDI ARABIA     gained 0.2% to 12,608
 KUWAIT           fell 0.3% to 8,074
 QATAR            dropped 0.7% to 9,958
 EGYPT            fell 2.9% to 28,224
 BAHRAIN          lost 0.4% to 2,068
 OMAN             was down 0.9% to 4,711
 ABU DHABI        fell 0.5% to 9,273
 DUBAI            was down 0.3% to 4,232
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