Saudi Arabia shares extend gains as oil rises on vaccine cheer; Dubai, Qatar struggle

Saudi shares on Wednesday traded higher as crude prices gained on hopes of an effective COVID-19 vaccine, while Dubai and Qatar markets lost steam after two consecutive sessions of solid gains.

Oil prices climbed more than 1%, after an industry report showed U.S. crude inventories dropped more than expected, while vaccine hopes continued to bolster sentiment.

Crude stockpiles fell by 5.1 million barrels last week to about 482 million barrels, industry group data showed, compared with analysts' expectations in a Reuters poll for a reduction of 913,000 barrels.


Saudi Arabia's benchmark index was up 0.4%, on track for a sixth straight session of gains, with oil behemoth Saudi Aramco edging up 0.4%, while Al Rajhi Bank added on 0.7%.

Dubai's main share index fell about 0.4%, with real estate stocks Emaar Malls and Emaar Properties shedding 2.4% and 2%, respectively.

Emaar Malls gained more than 14% on Tuesday after it signalled an optimistic future for Dubai retail industry for the rest of the year.

Middle East budget carrier Air Arabia fell 1.7% after it reported a third-quarter loss, but said it was in a strong position to weather the impact of the coronavirus crisis.

The Abu Dhabi index gained about 0.3%, supported by lenders First Abu Dhabi Bank and Abu Dhabi Islamic Bank that gained 0.4% and 3%, respectively.

In Qatar, the index traded 0.7% lower, with Qatar Industries shedding about 3%.

Kuwait's blue-chip index fell nearly a percent in early trade, after gaining about 1% in the previous session.

MSCI, the world's largest index provider, on Wednesday reclassified Kuwait stock indexes to emerging markets status from frontier.

Seven Kuwaiti securities will be added to the benchmark MSCI Emerging Markets Index at an aggregate weight of 0.58%.