News

By Md Manzer Hussain

March 27 (Reuters) - Stock markets in the Gulf dropped in early trade on Wednesday, on falling oil prices as the surge in crude stockpiles in the U.S. weighed on trader sentiment.

Oil prices - a catalyst for the Gulf's financial markets - declined for a second day, after a report that crude stockpiles in the U.S., the world's biggest oil user, surged and on signs major producers are unlikely to change their output policy at a technical meeting next week.

Benchmark Brent crude LCOc1 fell 0.9% to $85.46 a barrel by 0800 GMT.

Dubai's benchmark stock index .DFMGI eased 0.1%, weighed down by losses in finance, real estate and consumer discretionary sectors.

The blue-chip developer Emaar Properties EMAR.DU slid 0.6% and Dubai Islamic Bank DISB.DU shed 0.3%, while Dubai Electricity and Water DEWAA.DU added 0.8%.

In Abu Dhabi, the benchmark stock index .FTFADGI was down 0.2%, with Purehealth PUREHEALTH.AD falling 1.3% and the UAE's largest lender First Abu Dhabi Bank FAB.AD sliding 1.5%.

The Qatari benchmark index .QSI eased 0.1%, weighed down by a loss of 0.7% in Baladna BLDN.QA and a 0.6% dip in Industries Qatar IQCD.QA.

However, Qatar National Bank QNBK.QA, the region's largest lender gained 0.2%.

Saudi Arabia's benchmark stock index .TASI was down 0.1%, weighed down by losses in most sectors with Al Rajhi Bank 1120.SE, the world's largest Islamic lender, slipping 0.4% and Dr Sulaiman Al Habib Medical 4013.SE dropping 1.9%.

Meanwhile, Saudi Arabia's Modern Mills Company 2284.SE surged as much as 30% on its market debut on Wednesday, trading at 62.4 riyals per share, up from an offer price of 48 riyals.

(Reporting by Md Manzer Hussain; Editing by Sharon Singleton)

((MdManzer.Hussain@thomsonreuters.com;))

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