Mideast Stocks: Most Gulf Markets Fall on Weak Oil Prices

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 dropped 0.5%, weighed down by a 1.4% fall in Al Rajhi Bank and a 1.2% decrease in the country's biggest lender by assets Saudi National Bank. Elsewhere, oil giant Saudi Aramco 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 declined 0.6%, hit by a 2.7% slide in toll operator Salik Co. The Qatari benchmark finished 0.4% lower, with the Gulf's biggest lender Qatar National Bank losing 1%.

In Abu Dhabi, the index, 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 ended 1.1% lower as most of its constituents were in negative territory on profit-taking.

SAUDI ARABIA fell 0.5% to 10,619

Abu Dhabi rose 0.2% to 10,051

Dubai dropped 0.6% to 5,974

QATAR eased 0.4% to 11,142

EGYPT down 1.1% to 34,762

BAHRAIN dipped 0.1% to 1,933

OMAN gained 0.8% to 5,159

KUWAIT decreased 0.4% to 9,097