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Most stock markets in the Gulf edged up on Tuesday as benchmark oil prices, the key catalyst for the region’s financial markets, recovered from early losses.

Brent crude futures, which had fallen earlier by $1 a barrel, rebounded to $86.29 a barrel by 0737 GMT.

Saudi Arabia’s benchmark index rose 0.5%, extending gains to a third session in a row, supported by a 0.5% rise in Sulaiman Al-Habib Medical Services shares and as luxury real estate developer Retal Urban Development Co edged up 0.3%.

Among other stocks, Etihad Atheeb Telecom gained for a second day after it signed a more than 105-million-riyal ($27.9 million) contract with Saudi Arabia’s Najran and Tabuk provinces on Sunday.

The benchmark index in Qatar - among the world’s top exporters of liquefied natural gas - gained 0.4%, led by a 2% gain in Industries Qatar while its sharia lender Qatar Islamic Bank was up 1.7%.

Gulf shares start year in upbeat mood; Egypt outperforms peers

In Abu Dhabi, the index also advanced 0.4%, extending gains from the previous session, as United Arab Emirates’ largest lender First Abu Dhabi Bank rose 0.5%.

Dubai’s main share index, however, eased 0.2%, following a 0.7% decline in sharia-compliant lender Dubai Islamic Bank and a 1.4% slump in Emirates Central Cooling Systems Corporation.

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