Most Gulf stock markets fall in early trade, #Qatar rises | Reuters

Most Gulf stock markets fall in early trade, Qatar rises | Reuters

Most major stock markets in the Gulf fell in early trade on Wednesday after data showed that China slipped into deflation in July, a negative sign for the world economic growth outlook.

Closely watched China data on Wednesday showed consumer prices fell 0.3% in July from a year ago, the first decline since February 2021, although slightly better than the forecast of a 0.4% drop. Producer prices fell for a tenth consecutive month.

Saudi Arabia's benchmark index (.TASI) fell 0.2%, with Dr Sulaiman Al-Habib Medical Services (4013.SE) losing 1.6%, while Savola Group (2050.SE) retreated 8.2% after reporting a sharp fall in second-quarter profit.

However, the losses on the index were capped by a 1.1% rise in oil giant Saudi Aramco (2222.SE).

Aramco on Monday reported a net profit of 112.81 billion riyals ($30.07 billion) for the second quarter, beating a company-provided median estimate of $29.8 billion.

The group declared a base dividend of more than $19.51 billion, roughly in-line with its payout for the first quarter.

It will also start paying performance-linked dividends for six quarters, starting with a $9.87 billion payout in the third quarter, the company said.

Dubai's main share index (.DFMGI) lost 0.2%, hit by a 0.6% fall in blue-chip developer Emaar Properties (EMAR.DU).

In Abu Dhabi, the index (.FTFADGI) eased 0.1%.

However, the Qatari index (.QSI) advanced 0.5% as most of the stocks were in positive territory including petrochemical maker Industries Qatar (IQCD.QA), which was up 1.7% despite reporting a rise in first-half earnings.

Oil - a catalyst for the Gulf's financial markets - edged higher as tighter supply arising from output cuts by Saudi Arabia and Russia offset concerns over slow demand from top crude importer China and a report showing rising U.S. crude inventories.