MIDEAST STOCKS-UAE markets extend gains; #Saudi falls | Nasdaq

MIDEAST STOCKS-UAE markets extend gains; Saudi falls | Nasdaq

Most major Gulf markets finished higher on Tuesday, tracking broader Asian shares, as increased optimism about economic stimulus and global recovery boosted investor sentiment.

MSCI's gauge of Asia Pacific stocks outside Japan .MIAPJ0000PUS rose 1.49%, building on Monday's 2.3% gain as the markets remained buoyant ahead of Tuesday's talks between U.S. President Joe Biden and Republic Senators on a new COVID support bill.

The markets in the United Arab Emirates (UAE) led the Gulf region's gains for the second straight day, with both Abu Dhabi .ADI and Dubai .DFMGI shares firming about a percent.

The Abu Dhabi index put on 1.1%, driven by a 5% jump in Aldar Properties ALDAR.AD, while UAE's largest lender First Abu Dhabi Bank FAB.AD added 1.2%.

Dubai's main share index climbed 1%, buoyed by a 1.7% increase in its biggest lender Emirates NBD Bank ENBD.DU, while blue-chip developer Emaar Properties EMAR.DU tacked on 2.1%.

The investor sentiment in Dubai got a further boost as the emirate is all set to start vaccinating people with the Oxford-AstraZeneca AZN.L COVID-19 shot. The UAE is battling its biggest outbreak since the start of the pandemic.

In Qatar, the index .QSI firmed 0.4%, with petrochemical maker Industries Qatar IQCD.QA gaining 2.2%.

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.

Elsewhere, Saudi Arabia's benchmark index .TASI shed 0.4%, its third consecutive session of losses.

Index heavyweight Al-Rajhi Bank 1120.SE was the worst performer on the Saudi benchmark, declining 0.7%, while Saudi Basic Industries Corp 2010.SE, the world's fourth-biggest petrochemicals firm, slipped 1.3%.

Separately, Saudi Arabia's sovereign wealth fund may raise $10 billion or more through a revolving loan, exceeding what it initially targeted, sources said, as the Public Investment Fund (PIF) seeks extra liquidity to fund its plans.