Saudi Arabia's stock market slipped in early trade on Thursday, after volatile oil prices dropped below $30, while other bourses rebounded as traders bought on dips.

Brent crude was down by 45 cents, or 1.5%, to $29.27 a barrel at 0720 GMT, after dropping 4% on Wednesday, as the industry grappled with the growing global surplus of crude and the sharp coronavirus-led downturn in demand.

Saudi Arabia's benchmark index lost 0.3%, with Al Rajhi Bank easing 0.8% and oil giant Saudi Aramco shedding 0.8%.

Aramco is about to finalise a $10 billion loan with a group of roughly 10 banks as the world's largest oil producer seeks cash amid record low oil prices, Reuters reported citing three sources familiar with the matter.

Aramco is raising the loan to back its acquisition of a 70% stake in Saudi Basic Industries (SABIC) from Saudi Arabia's Public Investment Fund, a deal worth almost $70 billion. SABIC traded flat.

In Dubai, the index added 0.6%, supported by a 1.7% rise in Emirates NBD Bank and a 0.9% gain in sharia-compliant lender Dubai Islamic Bank.

The Abu Dhabi index advanced 1.2%, led by a 2.6% surge in the country's largest lender First Abu Dhabi Bank.

But, food and beverage firm Agthia Group slid 4.9% after it reported a decline in first-quarter profit.

Meanwhile, a senior United Arab Emirates official on Wednesday stressed the need for de-escalation in the region to allow countries to focus on "the hurricane" caused by the coronavirus pandemic and review development models.

In Qatar, the index was up 0.7%, bolstered by a 1.5% gain in petrochemical firm Industries Qatar.

 

 

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