MIDEAST STOCKS- #Saudi index leads major Gulf markets lower | Nasdaq

MIDEAST STOCKS-Saudi index leads major Gulf markets lower | Nasdaq

Major stock markets in the Gulf fell in early trade on Wednesday, led by losses in financials, with Saudi index leading the way.

Oil prices, a key catalyst for the Gulf's financial markets, retreated after industry data showed a surprise build in U.S. crude stocks. O/R

Saudi's benchmark index .TASI dropped 0.8%, weighed down by a decline in Al Rajhi Bank 1120.SE and oil giant Saudi Aramco 2222.SE.

However, HSBC said Aramco's prospects look more positive and promising for 2021, hinting at declining net debt and a possible dividend hike.

HSBC expects the oil giant to return to positive organic free cash flow of $5 billion in 2021, with Brent at $56 per barrel.

Meanwhile, U.S. President Joe Biden plans to call Saudi Arabia's King Salman on Wednesday, ahead of the public release of an intelligence report about the murder of journalist Jamal Khashoggi, Axios reported late on Tuesday, citing a source. .

The call, if it happens as scheduled, will be Biden's first conversation as president with the Saudi king, according to Axios.

In Dubai, the index .DFMGI dropped 0.4%, with blue-chip developer Emaar Properties EMAR.DU falling 1.7%, while Union Properties UPRO.DU was down 3%.

The Abu Dhabi index .ADI slipped up 0.2%, driven down by a 0.3% drop in market heavyweight First Abu Dhabi Bank FAB.AD.

The Qatari index .QSI eased 0.1%, on course to extend losses for a sixth-day in a row. Commercial Bank COMB.QA lost 1.2% and Qatar Islamic Bank QISB.QA declined 0.8%.