Gulf markets ended lower Monday as investor worries grew about a possible Greek default amid signs of rifts among euro zone policymakers, with Saudi Arabia's bourse leading the decline on a tight correlation to oil prices. The Saudi stock benchmark Tadawul All Share Index dropped 1.69 percent to 6,037.25 points to its lowest close since Aug. 24 and extended its 2011 losses to 8.8 percent. Lingering fears the US economy may be heading into a double-dip recession exacerbated global sentiment. World shares tumbled nearly 2 percent on Monday with European equities at 26-month lows, down more than 20 percent this year. Brent crude oil LCOc1 fell as much as $2.35 per barrel to a low of $110.42 but then recovered some ground to trade around $111.40 by 1000 GMT. Newly listed Integrated Telecom Company tumbled 7.4 percent and was the most traded stock. Alimna Bank dropped 1.1 percent and bellwether Saudi Basic Industries Corp. (SABIC) fell 2.9 percent. "Short-term sentiment will be driven by international markets, but as you reach the end of the quarter, you will see fundamentals take the front seat in investors' minds," said Asim Bukhtiar, head of research at Riyadh Capital. "In the next couple of weeks you'll see more excitement over results." Some analysts expect corporate earnings in the second-half to be an improvement over the first half. Elsewhere, Dubai's benchmark declined 0.9 percent to 1,460 points, its lowest close since Aug. 24. Abu Dhabi measure declined 0.4 percent to 2,584 points. Qatar benchmark slipped 1 percent to 8,295 points. Oman benchmark shed 0.6 percent to 5,676 points. Kuwait benchmark eased 0.05 percent to 5,977 points. Bahrain measure declined 0.4 percent to 1,261 points. Egypt's main index lost 1.7 percent as investors remained worried by a foggy political future.
