Major Gulf markets gained in early trade on Tuesday, in line with wider Asia shares, as further positive news on COVID-19 vaccine development kept the momentum going, lifting optimism about a sooner-than-expected global economic recovery.
Investor sentiment got a major fillip for a second time in as many weeks when Moderna Inc on Monday became the second U.S. drugmaker after Pfizer to announce promising trial data in the development of a vaccine against the pandemic.
Markets in the Gulf region were also helped by a rise in oil prices on expectations OPEC and its allies will extend production cuts for at least three months. O/R
OPEC and allies including Russia are leaning towards postponement of a planned January increase in oil output to support prices as the COVID-19 pandemic continues its second wave, sources told Reuters on Monday.
Saudi Arabia's benchmark index traded 0.3% higher, with consumer firm Savola Group gaining about 2%. Al-Rajhi Bank was the top gainer on the Saudi index, adding about 0.6%.
Dubai's main share index was up 0.8%, on track to post a third consecutive session of gains.
Real estate firm Emaar Properties advanced 1.3%, while Dubai Islamic Bank tacked on nearly a percent.
Financial stocks boosted the Abu Dhabi index, which gained 0.7%. First Abu Dhabi Bank and Abu Dhabi Commercial Bank tacked on 1.5% and 1.4%, respectively.
In Qatar, the index edged up 0.1%, with Commercial Bank leading the gains, trading 1.6% higher.
(Reporting by Aby Jose Koilparambil in Bengaluru, editing by Ed Osmond) ((abyjose.koilparambil@thomsonreuters.com; +91 (0)8061822683;))
