By Ateeq Shariff
Most stock markets in the Gulf ended lower on Wednesday amid weak oil prices, with the Saudi index continuing its downward trend after a flat trading session the previous day.
Oil prices - a catalyst for the Gulf's financial markets - fell by about 2% ahead of a weekend meeting of OPEC+ producers that is expected to consider another increase in production targets in October.
Saudi Arabia's benchmark index TADAWUL:TASI dropped 0.5%, weighed down by a 1.4% fall in Al Rajhi Bank TADAWUL:1120 and a 1.2% decrease in the country's biggest lender by assets Saudi National Bank TADAWUL:1180.
Elsewhere, oil giant Saudi Aramco TADAWUL:2222 was down 0.6%.
Oil prices are unlikely to gain much traction from current levels this year as rising output from top producers adds to the risk of a surplus and U.S. tariff threats curb demand growth, a Reuters poll showed on Friday.
Lower prices and disruptions to crude exports impact fiscal balances in countries reliant on oil income.
The kingdom's non-oil private sector growth was stable in August, with business activity expanding at a slightly quicker pace than in July, as new orders increased, a survey showed on Wednesday.
"However, this improved sentiment is offset by lower oil prices and risks emerging from uncertainty over future price movements," said Ahmed Negm, Head of Market Research MENA at XS.com.
Dubai's main share index DFM:DFMGI declined 0.6%, hit by a 2.7% slide in toll operator Salik Co DFM:SALIK.
The Qatari benchmark QSE:GNRI finished 0.4% lower, with the Gulf's biggest lender Qatar National Bank QSE:QNBK losing 1%.
In Abu Dhabi, the index ADX:FADGI, however, gained 0.2%.
The Abu Dhabi stock market is attempting to solidify its potential rebound after a period of correction, added Negm.
Outside the Gulf, Egypt's blue-chip index EGX:EGX30 ended 1.1% lower as most of its constituents were in negative territory on profit-taking.
SAUDI ARABIA
TADAWUL:TASI fell 0.5% to 10,619
Abu Dhabi
(.FTADGI) rose 0.2% to 10,051
Dubai
DFM:DFMGI dropped 0.6% to 5,974
QATAR
QSE:GNRI eased 0.4% to 11,142
EGYPT
EGX:EGX30 down 1.1% to 34,762
BAHRAIN
BAHRAIN:BHBX dipped 0.1% to 1,933
OMAN
(.MSX30) gained 0.8% to 5,159
KUWAIT
(.BKP) decreased 0.4% to 9,097