Major Gulf markets climb, track Asian shares | Reuters

Major Gulf markets climb, track Asian shares | Reuters

Major stock markets in the Gulf rose early on Tuesday, with Dubai leading the gains, in line with Asian shares as optimism increased about economic stimulus and global recovery.

Saudi Arabia’s benchmark index rose 0.5%, with National Commercial Bank, the kingdom’s largest lender, advancing 2% and oil giant Saudi Aramco adding 0.6%.

Oil prices, a key catalyst for the Gulf region’s financial markets, rose around 1%, after major crude producers showed they were reining in output roughly in line with their commitments. [O/R]

Voluntary cuts of 1 million barrels per day by Saudi Arabia are set to be implemented from the beginning of February through March.

Markets were buoyant ahead of negotiations on Tuesday as U.S. President Joe Biden appeared poised to push forward with his $1.9 trillion COVID-19 relief plan even if it fails to draw Republican support.

Dubai’s main share index climbed 1.1%, buoyed by a 2.1% gain in blue-chip developer Emaar Properties and a 1.3% increase in Emirates NBD Bank.

In Abu Dhabi, the index gained 0.8%, led by a 4.6% jump in Aldar Properties.

Aldar, Abu Dhabi’s largest property developer, said on Sunday, it had adopted a new operating model to drive its next phase of growth.

The model will focus on enhancing customer experience, digital transformation, operational efficiency and sustainability.

Among other gainers, First Abu Dhabi Bank, the country’s largest lender, traded 0.8% higher.

In Qatar, the index increased 0.6%, with petrochemical maker Industries Qatar rising 2%, while Doha Bank leapt 2.6%.

The Gulf state is planning to meet fixed income investors starting in mid-February, Reuters reported, citing two sources, ahead of a potential sale of international bonds.

Qatar will hold a so-called non-deal roadshow - investor meetings not tied to a specific deal - in Europe from Feb. 15-17, in the United States from Feb. 22-24 and in Asia on Feb. 25 and March 1, the sources said, adding that Standard Chartered is handling logistics.