Gulf markets drop, tracking oil, China

Gulf stock markets fell early Monday after oil prices fell again and Chinese equities dropped on poor economic data.

Brent crude was down 0.6 percent at $47.83 per barrel by 0543 GMT, while China’s CSI300 index and Shanghai Composite Index fell about 3 percent after growth in investment and factory output missed forecasts in August.

China is one of the main destinations for exports from the Gulf, both of crude oil and products such as petrochemicals, and its weakness may hurt economies in the region.

Dubai’s index fell 1.5 percent and most stocks were in the red. Mortgage lender Amlak Finance once again topped trading volume, dropping 3.4 percent.

The stock had more than tripled in price within weeks when it resumed trading in June after a six-year suspension but analysts described the trade as purely speculative.

Abu Dhabi’s index slid 1.0 percent and energy firm Dana Gas fell 1.9 percent.

Qatar’s bourse was down 0.8 percent, also sliding broadly. Petrochemicals heavyweight Industries Qatar dropped 2.0 percent. Kuwait’s index slipped 0.06 percent, while Oman’s market was nearly flat.

Source: Reuters