Saudi stocks weaken after stellar November

• UAE markets closed for holiday

DUBAI: Saudi shares started the month on a weaker note on Tuesday after the bourse's benchmark index nailed solid gains in November on global cheer over the progress of Covid-19 vaccine candidates. Investors worldwide are pinning their hopes on positive vaccine trial data, fuelling optimism about a faster than expected economic recovery.

Oil prices, a key catalyst for the region's financial markets, were broadly steady on Tuesday as investors awaited direction from the Organization of the Petroleum Exporting Countries (OPEC) and its allies after the producers postponed a formal meeting to decide whether to lift output from January.

The OPEC, Russia and other allies, a group known as OPEC+, delayed talks on next year's output policy to Thursday from Tuesday, as the main players had yet to agree, sources said.

The Saudi bourse's benchmark index, which posted its best monthly gain in four years in November, lost 0.3% in the first trading session of the month. Financial stocks dragged the index down with Saudi British Bank and Banque Saudi Fransi among top losers, declining about 8% and 2%, respectively.

Healthcare firm Dr. Sulaiman Al-Habib Medical Services Group Co fell 3.2%. Among gainers, Saudi Arabia's biggest lender National Commercial Bank tacked on 1.4%. The markets in the United Arab Emirates are closed for holidays till the end of this trading week and will reopen on Sunday.

Elsewhere, in Qatar, the main share index gained 1.3% with Qatar National Bank and Qatar Islamic Bank putting on 3.2% and about 2%, respectively. The Kuwait main index declined nearly a percent, with utility firm Shamal Az-Zour Al-Oula Power & Water Co leading the decliners, falling 3.9%. Outside the Gulf, Egypt's benchmark gained 0.9% with Commercial International Bank putting on 1.6%.