Oct 9 Reuters Most stock markets in the Gulf sank on Monday as battles between Palestinian Islamist group Hamas and Israel ignited fears of a wider conflict in the Middle East.

Israel said its troops backed by helicopters had also killed a number of armed infiltrators entering the country from Lebanon, further raising concerns fighting could spread two days after Hamas gunmen burst in from Gaza on a deadly rampage.

Dubai39;s benchmark index slumped 2.6, the sharpest fall since June last year. The index was dragged down by losses in all sectors with real estate developers Emaar Properties and Emaar Development dropping 4.4 and 5 respectively.

The emirate39;s largest lender Emirates NBD sank 1.9 and Dubai Islamic Bank dropped 3.3.

In Abu Dhabi, the benchmark index retreated for a fourth consecutive session and ended 1.3 lower, the lowest since May as almost all the stocks on the index were in negative territory.

Stateowned oil major ADNOC39;s units Abu Dhabi National Oil Company for Distribution and ADNOC Logistics lost 3.8 and 1.9 respectively.

Among the losers, the UAE39;s largest lender First Abu Dhabi Bank slipped 1.2 and Abu Dhabi Islamic Bank shed 2, while bluechip developer Aldar Properties slumped 2.9.

The Qatari index fell for a fourth straight session, ending 1.7 lower, with all stocks in the red.

The region39;s largest lender Qatar National Bank dropped 2.6 and Qatar Islamic Bank slid 1.7.

Saudi Arabia39;s benchmark index recovered some of previous…