AMMAN, 11 September 2004 — A speculative move that dominates Middle East bourses ahead of the third quarter results, coupled with a high degree of liquidity are expected to be the driving force for fresh gains in the coming three weeks, financial analysts said yesterday.

“Markets appear to be poised for fresh gains in the remaining part of September, as investors expect third quarter results which are better than last year’s,” Maher Muasher, head of the Brokerage Section at the Ahli Bank, told Arab News.“Speculation and a high degree of liquidity are believed to be the main dominant factors at this juncture,” he said. Muasher spoke as bourses of Jordan, Saudi Arabia, Kuwait and Egypt scored fresh advances in the trading week ending Thursday.

The all-share price index of the Amman Stock Exchange climbed 1.57 percent this week, closing at 2,979 points compared with 2,933 points last week, according to the ASE weekly report.

The market’s weekly turnover also increased by 54 percent, to 91 million dinars ($129 million), the report said.

“Many factors were behind the surge of activity at the ASE this week, including increased liquidity pumped in by local and regional investors,” said the Atlas Group, the Arab Bank’s investment arm.

The Saudi stock exchange’s benchmark price also gained 1.24 percent this week, to close at 6,396 points up from last week’s close at 6,318 points.

However, the index shed 10 points Thursday, apparently after investors decided to “get rid of selective shares ahead of the trading session on Saturday”, dealers said.

The communications sector lost 1.31 percent ahead of the advent of a new Saudi mobile firm, part of its shares are due to be offered for subscription early in October, they added.

Kuwait’s KSE index also rose by 1 percent this week, closing at 5,942.1 points.

“We believe the return of holiday makers and the rising oil prices will provide a boost for Kuwaiti, Saudi and other Gulf markets in the coming few weeks,” an Amman-based analyst said.

Egyptian stocks continued their marvellous performance this week for the third week in a row, buoyed by the government’s decision to trim by 40 percent custom fees on imported goods. The Hermes index gained 6.36 percent, closing at 18,442 points after crashing the psychological barrier of 18,000 points for the first time since 1992, dealers said.