MIDEAST STOCKS-Saudi banks decline on tax payments, Wall Street's decline weighs on Gulf | Reuters

MIDEAST STOCKS-Saudi banks decline on tax payments, Wall Street's decline weighs on Gulf | Reuters:

Saudi shares recovered some ground on Sunday after a sell-off in the banking sector when lenders said they had reached a deal with Islamic tax authorities to resolve a dispute over increased liabilities that would still result in big one-off payments.

Sentiment across Gulf markets was hurt by the plunge in Wall Street stocks on Friday as the U.S. government shutdown weighed on global markets.

The Saudi index opened more than 2 percent lower. At 0731 GMT, it was trading 1.6 percent down. But by the close, the benchmark ended down by 0.3 percent.