Mideast stocks: Major Gulf markets ease in early trade, Aramco edges higher | Reuters

Mideast stocks: Major Gulf markets ease in early trade, Aramco edges higher | Reuters

Major Gulf stock markets fell in early Sunday trade in the absence of fresh factors, with property shares weighing on the Dubai index.

Saudi Arabia’s benchmark index lost 0.2%, weighed down by a 1.5% fall in petrochemicals company Saudi Basic Industries.

Among others, Saudi Aramco reversed earlier losses to edge up 0.1% despite a sharp decline in full-year profit.

The oil giant expects to cut capital expenditure, it said after reporting a 44% slump in 2020 net profit, hit by lower crude oil prices and sales as the COVID-19 pandemic depressed demand.

In Dubai, the main share index fell 0.3%, with largest lender Emirates NBD losing 1.7% while DAMAC Properties retreated 2.7%.

The pandemic has placed added pressure on the property sector, where supply has outpaced demand for new houses and apartments for years in a market where foreigners account for the bulk of the population.

The Dubai real estate market is likely to remain in the doldrums over the next few years despite optimism over rising demand for certain market segments, with oversupply continuing to be a problem.

The Abu Dhabi index eased 0.1%, hit by a 0.4% fall for the country’s largest lender, First Abu Dhabi Bank.

In Qatar, the benchmark dropped 0.6%. Most constituents fell, including a 3.3% drop for Qatar International Islamic Bank.

In the previous session, the sharia-compliant lender traded ex-dividend.