DUBAI: Most Gulf stock markets strengthened on Wednesday, in tandem with global shares, as progress on the US fiscal stimulus front and positive news about Covid-19 vaccines lifted investor sentiment. US lawmakers continued to negotiate over additional stimulus to help offset the economic impact of the pandemic while pursuing a stopgap government-funding bill.
MSCI's gauge of stocks across the globe rose 0.3% to a record high 635.65. Oil prices, a key catalyst for the Gulf markets, gained as upbeat vaccine news spurred investor hopes for a recovery in fuel demand. Brent crude rose 27 cents, or 0.6%, to $49.11 a barrel by 1218 GMT. US West Texas Intermediate (WTI) crude climbed 22 cents, up 0.5%.
Saudi Arabia's benchmark index closed 0.6% higher, with Al Rajhi Bank gaining 0.5% and petrochemical maker Saudi Basic Industries jumping 1.2%. Dubai's main share index finished 0.3% higher for a fifth straight session. Top lender Emirates NBD gained 1.4% and was the top gainer on the main index, while sharia-compliant lender Dubai Islamic Bank added 0.4%.
The Abu Dhabi index also ended 0.3% higher, buoyed by a 0.5% increase in the country's largest lender, First Abu Dhabi Bank. Meanwhile, the United Arab Emirates' ambassador to Washington said there were "seeds of progress" in resolving a long-running Gulf Arab row and a commitment to "tone things down" as the parties work for a solution to end the rift with neighbouring Qatar.
The Qatari index edged down 0.1%, hurt by a 1.8% drop in shares of Industries Qatar. Outside the Gulf, Egypt's blue-chip index ended flat. Tobacco products maker Eastern Co was the top gainer, gaining nearly 5%, while Commercial International Bank lost about 0.6%.
Meanwhile, Egypt and the French Development Agency signed development financing agreements worth 715.6 million euros ($866.45 million), the Egyptian international cooperation ministry said in a statement.
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