(Bloomberg) — Equities across the Middle East advanced in the first day of trading after Israel and the United Arab Emirates said they reached an agreement to begin normalizing relations.

Israel’s TA-35 gained as much as 2%, leading gains in the region. The main indexes in Dubai and Abu Dhabi rose 0.6% and 0.2%, respectively, as of 11:12 a.m. local time, with peers in Kuwait, Saudi Arabia and Bahrain also up.

A joint statement from the U.S., Israel and UAE announced Thursday that the two Mideast nations will establish normal ties, signaling they will send ambassadors and open more direct commercial relations, including air travel. On Sunday, UAE-based APEX National Investment said it agreed to conduct research on the coronavirus with Israel’s TeraGroup, in what could be the first cross-border deal between the two nations.

“Over the past decades the region has been suffering from wars, political instabilities,” Ali El Adou, head of asset management at Daman Investments in Dubai, said in an interview with Bloomberg Television. “The agreement might be the breakthrough to the current political deadlock, and bring opportunities for peace and economic prosperity in the region.”

Investors also reacted to earnings reports across the region, including Savola Group in Saudi Arabia, Arabtec in Dubai and Burgan Bank in Kuwait.

MIDDLE EASTERN MARKETS:

• The TA-35 rises the most for a session since July 21
  • Defense systems producer Elbit Systems rises 4.4%, boosting the index by the most
  • Bank Hapoalim +2.5%, Israel Discount Bank +2.6%, Nice +1.7%
• UAE-Israel deal is historic, but “not game-changing, at first glance,” says Hasnain Malik, the head of equity strategy at Tellimer in Dubai
  • “The main immediate benefit for the UAE is less constrained cooperation with Israel on intelligence sharing and technology to counter Iran and domestic security threats.”
  • READ: Dubai Is Poised to Gain From Travel Opening With Israel
• In Kuwait, Shamal Az-Zour gains as much as 400% in its trading debut
  • Shares are negotiated at as high as 500 fils, after being sold at 100 fils in an IPO that raised KWD55m ($179m)
  • The company owns and operates a major power station in Kuwait, and was the first public offering resulting from a public-private partnership
• More earnings results across the region:
  • Savola 2Q Profit 409.6 Mln Riyals Vs. 110.2 Mln Riyals Y/y
  • Burgan Bank Second-Quarter Net Income 5.52m Dinars, -78% Y/y
  • Arabtec Posts First Half Loss; in Talks to Restructure Debt
  • Dubai Park Operator DXB Entertainments’ Loss Widens on Shutdown
  • Al Ahli Bank Of Kuwait 1Q Net Income 6.05 Mln Dinars, -51% Y/y
  • Alafco Third Quarter Net Income 5.88 Mln Dinars, +51% Y/y
  • Saudi Chemical Second Quarter Profit 40.2 Mln Riyals, +30% Y/y
  • Warba Bank First Quarter Net Income 2.08 Mln Dinars, -45% Y/y
  • Saudi Chemical Second Quarter Profit 40.2 Mln Riyals, +30% Y/y