Other markets were mixed with a late rally in Zain helping Kuwait close higher while Qatar’s index fell as real estate stocks dropped. Abu Dhabi’s index rose 0.1 percent as banking stocks rose.

Dubai’s index fell 2.5 percent to 1,833 points. It had gained 6.3 percent to a 14-week high in the two trading days after the government said it would spend up to $9.5 billion to restructure its debt-laden Dubai World conglomerate.

Saudi Arabia’s Tadawul All-Share Index (TASI) fell for a second straight session, led by lender Samba Financial Group which fell 4.1 percent to touch a four-week low.

Other banking stocks also fell as the market tested a key resistance level. The index dropped 0.4 percent to 6,770 points.

However, the market saw gains in six of the trading sectors ranging from 0.01 percent in building and construction to 0.88 percent in the transport sector. The overall market breadth was negative, with 49 advancers and 62 decliners recording an AD ratio of 0.79, the Financial Transaction House (FTH) said in its daily market commentary.

“The market is facing strong resistance at 6,800 levels and the weak buying bids are forcing trader to booking profit at this levels,” said Mohammed Ishaq Ali, a fund manager at Al-Rajhi Capital. 

“The selling pressure dragged down banking sector, whereas petrochemical sectors recovered losses, reacting to a jump in oil prices today at the back of weaker dollar and subsequent increase in demand for fuel.”

In Kuwait, Zain shares rebounded from Sunday’s fall to rise 1.5 percent after Reuters reported that the telecom operator was likely to sign an agreement for its $9 billion asset sale to India’s Bharti Airtel on Tuesday.

The index rose 0.7 percent to 7,524 points.

“Market makers are trying to push Zain stock higher before they finalize a deal with Bharti. I think they would want to push it to 1.5 dinars,” said Naser Al-Nafisi, general manager for Al-Joman Center for Economic Consultancy in Kuwait.

Doha’s index fell for the first session in three as Qatar Gas Transport Co (Nakilat) dropped 2.2 percent.

Property stocks also declined, with Barwa Real Estate Co falling 1.5 percent and Qatar Real Estate Co dropping 1.4 percent. The benchmark fell 0.3 percent to 7,440 points.

Banking stocks weighed on Oman’s index. The index slipped 0.3 percent to 6,795 points.

— With input from agencies