DUBAI, July 22 Gulf stock markets were neutral
to negative in early trade on Wednesday after the United Arab
Emirates said it would review domestic fuel prices, with
gasoline likely to become slightly more expensive but diesel
initially getting cheaper.

Dubai’s bourse slipped 0.2 percent after the UAE
Energy Ministry said it would switch from fixed gasoline and
diesel prices on the domestic market to ones based on global
prices and updated monthly. It provided no concrete figures.

A ministry official told Reuters that gasoline prices might
rise slightly from next month but diesel was expected to fall,
which would help the economy by restraining inflation and
reducing transport costs.

Changes in fuel prices would directly affect the bottom
lines of companies that rely heavily on trucks and cars, such as
courier Aramex, although shares in that company were
flat early on Wednesday.

Trading activity focused on small-cap stocks while property
names continued to pull back after a rally earlier this month.
Union Properties fell 1.6 percent and engineering and
construction firm Drake & Scull was down 1.5 percent.

Abu Dhabi’s index was nearly flat. Energy firm Dana
Gas dropped 4.8 percent, having surged 35 percent
earlier this month.

Meanwhile, Abu Dhabi Commercial Bank jumped 2.8
percent after posting a 21 percent rise in second-quarter net
profit late which slightly beat analysts’ forecasts, aided by
lower loan impairments.

The lender made a net profit attributable to shareholders of
1.28 billion dirhams ($349 million) in the quarter, while
analysts polled by Reuters had forecast an average of 1.18
billion dirhams.

Qatar’s bourse edged down 0.3 percent as most stocks
declined. Ezdan Holding, down 1.1 percent, was the
main drag.

Kuwait also slipped 0.3 percent while Oman
was nearly flat.

(Reporting by Olzhas Auyezov; Editing by Andrew Torchia)