MIDEAST STOCKS- #Saudi starts last month of 2020 on wobbly footing after a stellar November | Nasdaq

MIDEAST STOCKS-Saudi starts last month of 2020 on wobbly footing after a stellar November | Nasdaq

Saudi shares started the month on a weaker note on Tuesday, tracking lower oil prices, after the benchmark 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 an economic recovery at a pace faster than expected initially.

But on Tuesday, oil prices fell due to concerns over mounting supply after leading producers delayed talks on 2021 output policy that could extend cuts as the coronavirus pandemic continues to sap fuel demand. O/R

OPEC and allies led by Russia postponed the talks to Thursday, three sources said on Monday, as key players still disagreed on how much oil they should pump.

Saudi benchmark, which posted its best monthly gain in four years in November, eased 0.2% in morning trade.

Financials stocks dragged the benchmark with Saudi British Bank 1060.SE and Riyad Bank 1010.SE among top losers, declining 6% and 1.5%, respectively.

Oil behemoth and index heavyweight Saudi Aramco 2222.SE fell 0.4%, while Saudi Arabia's second-largest lender by assets Al-Rajhi Bank 1120.SE shed 0.3%.

Among gainers on the Saudi benchmark, food processing firm Wafrah For Industry & Development Co 2100.SE tacked on nearly 10%.

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 benchmark .QSI gained 0.7% with Qatar National Bank QNBK.QA and Qatar Islamic Bank QISB.QA putting on nearly 2% each.

The Kuwait benchmark .BKP declined 0.8%, with utility firm Shamal Az-Zour Al-Oula Power & Water Co AZNOULA.KW leading the decliners, falling 2.4%.