DUBAI, Sept 1 (Reuters) - Saudi Arabian stocks quickly gave up initial gains and Egypt’s fell in early trade on Tuesday, as global equities came under pressure from weak Chinese manufacturing data.
Asian and European stock markets dropped after data showed China’s manufacturing activity had slowed the most in three years in August, reinforcing fears of a greater slowdown in the world’s second-largest economy despite a flurry of government support measures.
The main Saudi stock index rose as much as 1.0 percent in the opening minutes, reacting to oil’s overnight surge, but then trimmed its gains to 0.2 percent.
Petrochemicals giant Saudi Basic Industries (SABIC), whose profits are sensitive to oil prices, was the main support, adding 0.6 percent.
Elsewhere, Al Tayyar Travel Group rose 1.8 percent after its founder, Nasser bin Aqeel al-Tayyar, said he would retain his 14.6 percent stake in the company after resigning as vice chairman and managing director. The stock has tumbled 10.7 percent in the previous two days.
Egyptian stocks edged down 0.7 percent after a 2.8 percent jump the previous day that was triggered by the discovery of a potentially huge gas field off its Mediterranean coast.
Ezz Steel, which analysts say could be one of the biggest beneficiaries if new gas supplies boost domestic power generation, continued to rise, adding 5.3 percent on top of Monday’s 10 percent gain. (Reporting by Olzhas Auyezov; Editing by Andrew Torchia, Larry King)