Mideast Stocks: Major Gulf markets ease in early trade as financial shares drag

Saudi Arabia's benchmark index slipped 0.1%

  
Image used for illustrative purposes only. Investors looks at stock exchange information at the Dubai Financial Market .

Image used for illustrative purposes only. Investors looks at stock exchange information at the Dubai Financial Market .

REUTERS/Mosab Omar

Major Gulf stock markets were subdued in early trade on Monday, mostly hurt by losses in financial shares, while property shares weighed on Dubai's index.

Saudi Arabia's benchmark index slipped 0.1%, with oil giant Saudi Aramco and National Commercial Bank both falling 0.3%.

Amongst others, Saudi Real Estate retreated 0.9% a day after the company signed debt restructuring agreement of 2.07 billion riyals ($551.90 million).

Dubai's main share index lost 0.4%, with Emaar Properties falling 1.1% and sharia-compliant lender Dubai Islamic Bank was down 0.5%.

On Friday, S&P Global downgraded the blue-chip developer to a BB+ "junk" rating from an investment grade BBB- score.

It said it expected a 30%-40% slump in Emaar's earnings in 2020, and a 15%-20% dive in overall revenues, while the anticipated recovery next year would be only partial.

The Abu Dhabi index eased 0.2%, hurt by a 0.5% fall in telecoms firm Etisalat and a 0.8% decline in Abu Dhabi Commercial Bank .

In Qatar, the index declined 0.4%, driven down by a 0.7% fall in Qatar Islamic Bank and a 0.5% drop in Qatar National Bank (QNB).

QNB, the Gulf's largest lender, posted 2.84 billion riyals ($779.90 million) in net profit in the second quarter, down from 3.83 billion riyals a year earlier.

The bank increased its loan loss provisions in the second quarter to 1.5 billion riyals from 605.5 million riyals a year earlier.

($1 = 3.6415 Qatar riyals)

($1 = 3.7507 riyals)

(Reporting by Ateeq Shariff in Bengaluru) ((AteeqUr.Shariff@thomsonreuters.com; +918061822788;))

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