MIDEAST STOCKS-Banks lift #Saudi index; other markets little changed | Nasdaq

MIDEAST STOCKS-Banks lift Saudi index; other markets little changed | Nasdaq

Gains in banks helped Saudi Arabian shares rise for a fourth straight session on Wednesday, while other major Gulf markets traded little changed.

Saudi Arabia's benchmark index advanced 1%, with Al Rajhi Bank gaining 2.3% and National Commercial Bank (NCB) advancing 2.4%.

Oil-rich Gulf Cooperation Council (GCC) countries, whose state coffers have been battered by the COVID-19 pandemic, are set to get some fiscal respite after OPEC and its allies last week agreed to extend most oil output cuts into April.

OPEC's leader Saudi Arabia said it would extend its voluntary oil output cut of 1 million barrels per day for a third consecutive month and that it would decide in the coming months to gradually phase it out.

The Qatari index rose 0.5%, set for a third consecutive session of gains.

Utility company Qatar Electricity and Water firmed 2.9% after announcing that it would build a new plant in 2027 with a production capacity of 2,600 megawatts of electricity and 100 million gallons of water per day.

In Dubai, the index eased 0.6%, weighed down by a 0.9% decline in Emirates' largest lender, Emirates NBD , and a 0.6% fall in sharia-compliant lender Dubai Islamic Bank .

S&P Global Ratings said in a report earlier this month that economic recovery in Dubai would be subdued and its gross domestic product in dollar terms would return to the 2019 level only in 2023.

Dubai's economy - heavily reliant on sectors such as transportation, tourism, and retail shopping - has suffered due to the COVID-19 crisis.

The Abu Dhabi index was down 0.1%, as market heavyweight First Abu Dhabi Bank declined 0.3%.

Consulting firm Alvarez & Marsal (A&M) said on Tuesday that the pandemic would continue to affect profitability for banks in the United Arabia Emirates in the early quarters of 2021, after a sharp drop in return on equity last year.