Major stock markets in the Gulf closed higher on Wednesday as stimulus measures by central banks eased worries about the economic impact from the coronavirus outbreak, while other indexes extended losses.

In Abu Dhabi, the index advanced 2.3%, snapping five days of losses, boosted by a 14.9% surge in teleco Etisalat. The exchange on Wednesday reduced the daily maximum decline of shares to 5% from 10% earlier. 

On Tuesday, ratings agency Moody's Investor Service said the United Arab Emirates (UAE) support scheme would soften the fallout from the pandemic on the economy and banks.

The UAE last week announced a $27 billion plan to counter the outbreak's economic impact.

"Support measures will limit UAE banks likely material asset quality deterioration due to the coronavirus outbreak," Moody's said.

Dubai's index ended 1% higher, with its largest lender Emirates NBD gaining 2.1% and telecoms firm duclimbing 6.7%.

Qatar's index extended gains for a fourth session, to close 1.7% up. Qatar National Bank, the Gulf's largest lender, jumped 5.8%, while lender Masraf Al Rayan  increased 1.6%.

On Sunday, Qatar said it would ban non-Qataris from entering the country for two weeks as of Wednesday and announced measures to support the economy including providing 75 billion riyals ($20.53 billion) in financial incentives to the private sector. 

Saudi Arabia's index added 0.8%, supported by a 5.3% rise in Saudi British Bank 1060.SE and a 3.5% increase in Samba Financial Group.

Saudi Arabia, which chairs the Group of 20 major economies, announced an extraordinary virtual leaders summit next week "to put forward a coordinated set of policies to protect people and safeguard the global economy." 

Egypt's blue-chip index slid 4.8, with 27 of 30 stocks plunging, as Commercial International Bank tumbled 5.8%.

Egypt said on Monday it intended to shut down air traffic starting Thursday until March 31. 

In Bahrain, which reported its first death from coronavirus on Monday, the index slipped 0.3%.

The country announced on Tuesday a financial package of 4.3 billion Bahraini dinar ($11.39 billion) to combat the fallout from the coronavirus outbreak. 

($1 = 3.6527 Qatar riyals)

($1 = 0.3774 Bahraini dinars)

(Reporting by Ateeq Shariff in Bengaluru Editing by Mark Heinrich) ((AteeqUr.Shariff@thomsonreuters.com; +918061822788;))