Most Gulf bourses drop in early trade on weaker oil prices | Reuters

Most Gulf bourses drop in early trade on weaker oil prices | Reuters

Most stock markets in the Gulf fell in early trade on Wednesday, tracking oil prices lower as weak services activity data from China revived worries over its economy's recovery.

Crude prices — a key catalyst for the Gulf's financial markets — fell 0.4% after rising over 1% in the previous session with Brent trading at $89.6 a barrel by 0740 GMT.

Investor sentiment was dampened by a private-sector survey on Tuesday that showed China's services activity expanded at the slowest pace in eight months in August, reflecting weak demand in the world's top oil importer.

In Abu Dhabi, the benchmark stock index (.FTFADGI) was down 0.5%, dragged down by a 0.7% loss in conglomerate International Holding Company(IHC.AD) and 0.8% drop in First Abu Dhabi Bank (FAB.AD),the largest lender in the United Arab Emirates.

Dubai's benchmark stock index (.DFMGI) dropped 0.2% in early trade, weighed down by losses in all sectors, with Emaar Properties (EMAR.DU) slipping 0.9% and the Dubai Electricity and Water Authority (DEWAA.DU) dropping 0.8%.

Saudi Arabia's benchmark stock index (.TASI) fell 0.2% with Dr Sulaiman Al-Habib Medical Services (4013.SE) slumping 2.5%.

Among the losers, Etihad Etisalat Co (7020.SE) lost 1.5% and Saudi Telecom Company (STC) (7010.SE) shed 1.4%.

STC, the kingdom's largest telecoms operator acquired a 9.9% stake in Telefonica worth 2.1 billion euros ($2.25 billion), becoming top shareholder in Spanish telecom giant, it reported on Tuesday after market hours.

In Qatar, the benchmark (.QSI) rose 0.7%, with Industries Qatar(IQCD.QA) surging 3.2% and Gulf's largest lender Qatar National Bank (QNBK.QA) gaining 0.6%.