Mideast Stocks: Most Gulf bourses track global shares lower; #Dubai gains

Mideast Stocks: Most Gulf bourses track global shares lower; Dubai gains

Most Gulf bourses tumbled in early trade on Wednesday, in line with global peers as rising inflation fears around the globe deepened worries over growth prospects.

The MSCI world equity index, which tracks shares in 50 countries, was down 0.61%. The pan-European STOXX 600 index fell 0.72%.

In Abu Dhabi, the index dropped 0.8%, set to end a three-session rally, weighed down by a 1.8% fall in the United Arab Emirates' largest lender First Abu Dhabi Bank.

Response Plus Holding, however, jumped 3.1% after the company's board approved opening of its unit's branch in Riyadh.

Saudi Arabia's benchmark index declined 0.6%, with the country's biggest lender Saudi National Bank and oil giant Saudi Aramco retreating 1.1% each.

Oil prices, a key catalyst for the Gulf's financial market, turned negative after a report that some producers were exploring the idea of suspending Russia's participation in the OPEC+ production deal.

The energy index in Saudi Arabia was down 1.3%.

Exempting Russia could pave the way for Saudi Arabia, the United Arab Emirates and other OPEC members to produce more to meet production targets.

The Qatari index dropped 0.6%, hit by a 1.2% drop in Gulf's largest lender Qatar National Bank.

Dubai's main share index gained 1.1%, boosted by a 2.7% rise in top lender Emirates NBD and a 1.7% increase in Sharia-compliant lender Dubai Islamic Bank .

Dubai's housing prices are set to rise steadily over the next two years, driven by demand from foreign investors, according to a Reuters poll of analysts, who cautioned that higher interest rates and lack of affordable homes could curb activity.