Most stock markets in the Gulf traded higher early on Tuesday, on track to extend gains from the previous session after news of progress in the development of a COVID-19 vaccine boosted global risk appetite.

Drugmaker Pfizer Inc said its COVID-19 vaccine, developed with German partner BioNTech SE, was more than 90% effective in preventing infection, marking the first successful results from a large-scale clinical trial.

Dubai's main share index climbed 1.6%, buoyed by a 3.9% rise in blue-chip developer Emaar Properties and a 6.9% jump in Emaar Malls.

Investors also cheered the prospect of improved trade relations under U.S. President-elect Joe Biden.

Saudi Arabia's benchmark index advanced 1.1%, with the country's largest lender, National Commercial Bank, leaping 3.2% and Al Rajhi Bank up 0.4%.

The kingdom's economy shrank 4.2% in the third quarter from a year earlier, government data showed on Tuesday, a smaller contraction than the second quarter when it was reeling from coronavirus-linked lockdowns.

The Kuwaiti index rose 0.7% ahead of results from global index provider MSCI's semi-annual review, with Kuwait Finance House rising 1.9%.

The anticipated addition of Kuwait to the MSCI Emerging Market index at the end of November is expected to positively affect the flow of foreign capital in Boursa Kuwait, Kamco Invest said in a research note on Thursday.

Abu Dhabi's index edged up 0.2%, helped by a 0.5% increase in the United Arab Emirates' largest lender, First Abu Dhabi Bank.

In Qatar, the index fell 0.5%, hurt by a 2.7% fall in petrochemical maker Industries Qatar.

 

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