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Saudi pulls back as stock market re-opens after holiday

Saudi Arabian stocks pulled back in early trade on Sunday after the bourse reopened following the Eid al-Adha break, with investors deterred by a recent downturn in global equity and oil markets.

Riyadh's index was down 1.3 percent after an hour of trade as three quarters of the traded shares dropped.

Oil-related companies were the biggest losers, with Saudi Kayan Petrochemical declining 2.3 percent in heavy trade, after Brent futures fell by around 5 percent during the 10 days the Riyadh bourse was closed.

Banking shares were also weak with heavyweight National Commercial Bank falling 2.2 percent.

Key interest rates in Saudi Arabia are linked to U.S interest rates, given the currency's peg to the dollar, and the uncertainty over Wednesday's U.S. Federal Reserve meeting following a week of mixed U.S economic data weighed on sentiment. However, the market viewed the likelihood of a U.S. rate rise as low.

Qatar's share index climbed 0.4 percent with gainers outnumbering losers 12-to-8.

Before the holiday the index was hit by profit taking as investors dumped shares which had outperformed last month in anticipation of their inclusion in index compiler FTSE's secondary emerging market index on Sept. 20.

Islamic lender Masraf Al Rayan was up 0.3 percent on Sunday and Qatar Insurance gained 1.7 percent.

Dubai's index was little changed after it had dropped 1.1 percent on Thursday, when it reopened after a week-long holiday.

Shuaa Capital, the most traded stock, jumped 6.9 percent. Shares in the investment firm have surged over the past three weeks since the firm started to offer liquidity services for Nasdaq Dubai's single stock futures trades. Shuaa is the only firm offering market-making facilities to brokers.

Dubai Parks and Resorts added 0.6 percent; the amusement park builder will be opening its theme parks next month.

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