Major Gulf stocks were mixed in early trade on Monday amid falling oil prices, as hopes for a rebound in Chinese demand faded.

Crude prices, a key catalyst for the Gulf’s financial markets, fell more than $1 a barrel after Chinese officials over the weekend reiterated their commitment to a strict COVID containment approach, dashing hopes of improved demand at the world’s top crude importer.

Saudi Arabia’s benchmark index dropped 0.4%, hit by a 0.9% fall in the country’s biggest lender Saudi National Bank and a 0.4% decrease in oil giant Saudi Aramco.

On the other hand, Arabian Drilling Co surged over 18% to 118.4 riyals in its debut trade.

The Saudi oilfield services firm set its final price at 100 riyals a share - at the top end of its price range - and raised 2.67 billion riyals ($710.58 million), valuing it at 8.9 billion riyals.

The deal is the latest in a string of initial public offerings (IPO) from the Gulf that has continued this year in defiance of global market trends.

The Qatari index lost 0.3%, weighed down by a 0.8% fall in Qatar National Bank and a 0.4% decrease in petrochemical maker Industries Qatar.

Dubai’s main share index added 0.2%, helped by a 2.7% rise in diversified investment group Dubai Investments and 4% jump in Dubai Financial Market.

Dubai’s Emirates Central Cooling Systems Corporation (Empower) increased the size of the stake in the company being offered in an IPO to 20%, following strong demand and oversubscription across all tranches.

Most Gulf bourses in red on falling oil prices; Egypt stocks jump

Empower is the fourth state-linked entity to seek a listing in Dubai this year in a programme aimed at boosting investor interest in the domestic stock exchange.

In Abu Dhabi, the index edged 0.1% higher, with First Abu Dhabi Bank, the Gulf’s biggest lender, gaining 0.9%.