Major Gulf markets fall on lower oil prices | Reuters

Major Gulf markets fall on lower oil prices | Reuters

Major Gulf indexes dropped in early trade on Monday, tracking oil prices lower, with the Dubai bourse leading losses.

Crude prices - a key catalyst for the region's financial markets - fell as concerns about fuel demand in top global oil consumers, the U.S. and China, offset bullish sentiment about tightening supplies due to OPEC+ cuts and a resumption in U.S. buying for reserves.

Saudi Arabia's benchmark index (.TASI) declined 0.3%, with Riyad Bank SJSC (1010.SE) losing 1.8% and Al Rajhi Banking and Investment Corporation (1120.SE) easing 0.3%.

The kingdom's annual inflation rate was 2.7% in April, unchanged from the previous month, driven mostly by housing rental costs, according to government data released on Monday.

The inflation outlook for the Gulf countries is muted in comparison to many major economies, a Reuters poll found.

Dubai's main share index (.DFMGI) retreated 1.1%, with Sharia-compliant lender Dubai Islamic Bank PJSC (DISB.DU) losing 1.9% and blue-chip developer Emaar Properties PJSC (EMAR.DU) declining 1.3%.

In Abu Dhabi, the index (.FTFADGI) lost 0.6%, with Alpha Dhabi Holding PJSC (ALPHADHABI.AD) retreating 0.9%, while ADNOC Gas Plc (ADNOCGAS.AD) slid about 4%, falling for a third consecutive session.

The energy firm, which debuted in a March IPO, reported a 9% rise in net income. Revenue, however, fell 15% year-on-year to $6.2 billion.

Meanwhile, Abu Dhabi National Energy Company PJSC (TAQA.AD) gained 1% after reporting quarterly net income of 11.6 billion dirhams ($3.16 billion), an increase of 9.6 billion dirhams, and proposed a dividend of 0.65 fils.

The Qatari benchmark (.QSI) slipped 0.8%, as most of the index traded in negative territory, including the region's biggest lender Qatar National Bank QPSC (QNBK.QA), which declined 1.7%.

Bucking the trend, however, Qatar Navigation QPSC (QNNC.QA) rose 3.8%.