Amman- Arab stock markets reacted positively this week to good news out of Wall Street and other global markets as well as to rising oil prices, financial analysts said Friday. However, they expected regional markets to plateau in the coming weeks as investors monitor the first quarter results and world developments.
"I believe regional markets have been affected by rises at the Wall Street and other global bourses as well as by optimistic news about the US economy and hopes attached to the G-20 summit in London in April," Wajdi Makhamreh, Chief Operating Officer at the Amman-based Sanabel International Holding, told Deutsche Presse- Agentur dpa.
"We think that this week's improvement of oil prices and the rising demand for crude will reflect positively on Arab stock markets particularly in the Gulf area," he said.
Saudi shares rebounded strongly this week after a month-long series of losses. The upward trend was led by blue chips, particularly the petro-chemical sector.
The Tadawul All Share Index (TASI) of the Arab world's largest stock exchange climbed 6.5 per cent this week, closing at 4,400.21 points.
TASI is currently 8.4 per cent lower than the year's start, according to the weekly report of the Riyadh-based Bakheet Investment Group (BIG).
The report attributed the rebound mainly to the "significant gains scored by US stocks since March 9and the positive reports about the performance of the US financial sector in January and February, which boosted the sentiment of recovery of the world economy by the end of 2009".
The BIG expected the Saudi stock market to "fluctuate narrowly" following this week's gains.
"However, investors will be eying the upcoming corporate results of listed companies for the first quarter to have a clear outlook regarding their performance under the current economic conditions," the report said.
Jordanian shares also scored gains this week buoyed by improved liquidity due to the central bank's instructions to commercial banks to ease credit squeeze.
There have also been reports about new liquidity pumped into the market by Iraqi investors following moves by the government to ease entry and residence restrictions for Iraqi businessmen.
The all-share price index of the Amman Stock Exchange gained 1.38 per cent this week, closing at 2,631 points, according to the ASE weekly report.
Kuwaiti stocks received a boost this week due to the Emir Sheikh Sabah al-Ahmad al-Sabah's decision to dissolve parliament and call new elections after the government reached deadlock with the Legislature.
Kuwait's KSE all-share price index gained 2 per cent this week, to close at 6,684 points.
The United Arab Emirates stock exchange of Dubai closed week higher, gaining 1.9 per cent and closing at 1,533 points.
Egypt's AGX 30 index, which measures the performance of the market's 30 most active stocks, surged 7.2 per cent, to close week at 3,967 points.
