Mideast Stocks: Gulf markets drop as weak China data drives oil lower

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Stock markets in the Gulf ended lower on Tuesday, tracking a decline in oil prices as weak services activity data from China stoked concerns about the recovery in the world's second-largest economy. Crude prices — a key catalyst for the Gulf's financial markets — slipped 0.6% with Brent trading at $88.44 a barrel by 1200 GMT.

A private-sector survey showed on Tuesday that China's services activity expanded at its slowest pace in eight months in August, as weak demand continued to dog the world's biggest oil importer.

In Abu Dhabi, the index dropped for a third consecutive session, ending 0.9% lower, weighed down by a 0.9% drop in conglomerate International Holding Company and a 1.3% decline in Multiply Group.

The UAE's largest lender, First Abu Dhabi Bank, slumped 1.8% and Abu Dhabi Islamic Bank lost 1.1%. The Qatari index extended its losing streak to a fifth straight session, closing 0.6% lower with most sectors in the red. Qatar National Bank, the region's largest lender declined 1.6% while Qatar Gas Transport dropped 3.3%.

Dubai's benchmark index fell for a second consecutive session, down 0.4%, with all sectors in the negative territory. Tolls operator Salik lost 1.5% and National Central Cooling Co slumped 4.1%. The emirate's largest lender, Emirates NBD, slipped 1.2%.

Saudi Arabia's benchmark index lost 0.2%, extending its losses to a fourth consecutive session with oil major Saudi Aramco falling 0.6% and Saudi National Bank shedding 1%.

Outside the Gulf, Egypt's blue-chip index rose 0.7%, extending its gains to a second session with Commercial International Bank adding 1.5% and Eastern Co surging 7.3%. Egypt's main tobacco products maker Eastern reported a 90.1% surge in full-year net profit with revenue also increasing from a year earlier.