AMMAN, 18 December 2004 — Middle East stock markets are expected to retain their “upward trend” until the end of December, though fluctuations cannot be excluded due to the change of positions ahead of the new year, analysts said yesterday.

“We are optimistic that the upward trend will continue until the end of the year though at a lower pace due to the liquidation of old positions and the building of new ones,” Amer Muasher, head of the brokerage department at the Jordan National Bank, told Arab News.

“Therefore, we expect fluctuations in prices in the coming couple of weeks with investors focusing on blue chips with expected high profits,” he said.

Muasher and other portfolio managers expected the Palestinian and Iraqi elections set for January to have “positive impact” on regional markets.

Jordanian shares scored fresh gains in the week ending Thursday, propelled by the banking sector particularly the heavyweight Arab Bank.

The all-share price index of the Amman Stock Exchange gained 3.89 percent, to close week at 4,219 points compared with 4,061 points last week, according to the ASE weekly report.

Saudi shares also continued to show strong performance following the recent downward correction.

The all-share price index of the Arab world’s largest bourse climbed 6.8 percent this week, closing on Thursday at 8,175.76 points, according to the Bakheet Financial Advisors.

The Riyad Bank share gained 14.5 percent following a decision by the bank’s management to increase capital.

The Saudi Basic Industries Corp. (SABIC), the largest stock in the market, advanced 8.7 percent, while the Saudi Telecom Co. (STC) surged 6.8 percent.

The BFA expected the Saudi shares to “continue their gradual gains, but at a smaller rate, until releasing the fourth quarter’s results”.

In Kuwait, the KSE all-share price index moved sideways this week due to profit gain tactics.

The benchmark price closed week at 6,457 points, down from last week’s close at 6,477 points.

According to analysts, the Kuwait Central Bank’s decision to raise the rediscount rate by a quarter percentage point, to 4.75 percent, “will not have a tangible impact” on Kuwaiti stocks.