Qatar stocks up 1.7% after Gulf rift breakthrough

DUBAI, Jan 5 (Reuters) - Qatar stocks rose nearly 1.7% in early trade on Tuesday, boosted by news a breakthrough had been reached in Qatar’s three-year-old dispute with Saudi Arabia and three other Arab countries.

At 0638 GMT, Qatar’s key index was up 177.17 points at 10,654.29 points.

“While this is undoubtedly positive news, and Qatari listed equities should enjoy a sentiment rally, the impact on fundamentals is likely to be modest,” said Akber Khan, Akber Khan, head of asset management at Al Rayan Investment in Doha.

As part of the deal, Saudi Arabia will reopen its airspace and land and sea border to Qatar as of Monday, Kuwaiti Foreign Minister Ahmad Nasser al-Sabah said on Kuwait TV ahead of a Gulf Arab summit in Saudi Arabia on Tuesday. (Reporting by Saeed Azhar; Editing by Jacqueline Wong)