Saudi shines on day of Gulf negatives

MARKETS DECLINE: Dubai led a decline on Gulf markets on Monday. (Getty Images)

Dubai's benchmark index fell sharply, with property and bank stocks leading, as investors grappled with the government's decision to help two mortgage lenders and news that Dubai will limit supply in its property sector.

The index was down 5.33 percent. Emaar Properties and Emirates Islamic Bank fell 9.52 percent and five percent, respectively.

The UAE government stepped in to support two troubled lenders, Amlak and Tamweel whose shares are suspended on the Dubai bourse.

In Abu Dhabi, the index dropped 3.44 percent with Abu Dhabi Commercial Bank down 4.88 percent while Abu Dhabi Islamic Bank fell 6.63 percent.

Saudi Arabia's benchmark index snapped a four-day losing streak to end higher, led by a rally in banking stocks.

The Saudi bourse rose 6.21 percent as major banks posted more than nine percent gains including Al-Rajhi Bank, SABB and Saudi Hollandi Bank.

Qatar National Bank and Industries Qatar led the country's index to a lower close while Zain weighed on Kuwait.

Qatar's benchmark fell 1.28 percent as Qatar National Bank and Industries Qatar dropped 2.91 percent and 2.31 percent respectively.

Zain fell 1.85 percent as Kuwait's main index closed 1.88 percent lower.

In Muscat, the index inched down 0.3 percent.

"In Oman, it's a little down today but we see some signs of stabilising," said Adel Nasr, local brokerage manager at United Securities in Muscat.

"We see some accumulation buying on Omantel, Bank Muscat, this is good, it means people are building posititions.

"We still need some time to rebuild confidence for investors."

Bahrain ended down 3.34 percent.

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