Stock markets in the Gulf dropped in early trade on Wednesday, on falling oil prices as the surge in crude stockpiles in the US weighed on trader sentiment.

Oil prices - a catalyst for the Gulf’s financial markets - declined for a second day, after a report that crude stockpiles in the US, 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.

Benchmark Brent crude fell 0.9% to $85.46 a barrel by 0800 GMT.

Dubai’s benchmark stock index eased 0.1%, weighed down by losses in finance, real estate and consumer discretionary sectors.

The blue-chip developer Emaar Properties slid 0.6% and Dubai Islamic Bank shed 0.3%, while Dubai Electricity and Water added 0.8%.

In Abu Dhabi, the benchmark stock index was down 0.2%, with Purehealth falling 1.3% and the UAE’s largest lender First Abu Dhabi Bank sliding 1.5%.

The Qatari benchmark index eased 0.1%, weighed down by a loss of 0.7% in Baladna and a 0.6% dip in Industries Qatar.

However, Qatar National Bank, the region’s largest lender gained 0.2%.

Most Gulf bourses dip in early trade; Dubai gains

Saudi Arabia’s benchmark stock index was down 0.1%, weighed down by losses in most sectors with Al Rajhi Bank, the world’s largest Islamic lender, slipping 0.4% and Dr Sulaiman Al Habib Medical dropping 1.9%.

Meanwhile, Saudi Arabia’s Modern Mills Company surged as much as 30% on its market debut on Wednesday, trading at 62.4 riyals per share, up from an offer price of 48 riyals.