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Gulf markets pull back; Dubai’s Amlak rises in catch-up rally

Dubai's index fell 1.1 percent with most stocks in the red. But Amlak Finance, which was the most traded stock in the emirate, surged 8.2 percent.

DUBAI, June 7 (Reuters) – Gulf stock markets edged down in early trade on Sunday after oil prices ended the week lower and corporate news flow remained thin ahead of summer holidays.

Oil had staged its first rally in three days on Friday, gaining 2 percent, despite warnings of more oversupply as a result of OPEC’s decision to keep pumping crude without restraint. But for the week, Brent fell 3.6 percent.

Another negative factor for Gulf equities was the escalation of fighting in Yemen where the Houthi group and its allies fired a Scud ballistic missile into Saudi Arabia on Saturday.

Dubai’s index fell 1.1 percent with most stocks in the red. But Amlak Finance, which was the most traded stock in the emirate, surged 8.2 percent.

Amlak resumed trading this week after being suspended for nearly six years because of debt problems. Dubai’s index has roughly doubled in that time.

Abu Dhabi edged down 0.5 percent as blue chips First Gulf Bank and Etisalat lost 1.0 and 0.4 percent respectively.

Qatar’s bourse slid 1.0 percent, extending the bout of weakness which began last Thursday, after a U.S. law enforcement official said the FBI’s investigation of FIFA included the award of World Cup hosting rights to Russia and Qatar.

Kuwait’s market slipped 0.3 percent while Oman was nearly flat.

(Reporting by Olzhas Auyezov; editing by Jason Neely)