AMMAN, 25 December 2004 — As the year draws to a close, Middle East bourses are expected to remain “steady” as investors continue to spruce their portfolios in accordance with leaking information about the 2004 performance of listed firms, particularly blue chips, financial analysts told Arab News yesterday.
“We believe markets will be steady until the end of December, while investors amend their positions in accordance with reported dividend distributions of major stocks,” said Rajaa Qudaimat, director of stock markets at the ABC Investment Co. affiliated with the Arab Banking Corporation. “I think we are going to see an upward movement in January against expectations of good 2004 performance of blue chips,” she said.
Qudaimat and other portfolio managers expected the presidential election set for Jan. 9 and the general elections in Iraq scheduled for Jan. 30 “will have a positive impact on regional markets if they help to boost stability” in bother areas.
The Amman Stock Exchange’s all-share price index lost 1.66 percent in the week ending Thursday due to selling pressure, closing at 4,149 points down from 4,219 points last week, according to the ASE weekly report.
The benchmark price was pulled down by the banking sector’s index which slipped 3 percent spearheaded by the heavyweight Arab Bank.
Saudi shares eased in the last two days of the week, with the all-share price index losing 0.3 percent. The Tadawul benchmark price closed week on Thursday at 8,150.24 points after climbing to 8,327.34 points on Sunday, according to the Bakheet Financial Advisors.
The BFA attributed the retreat to “selling pressure that affected most stocks as investors directed their interest to the recently traded stock Ettihad Etisalat that was listed on Monday”. In Kuwait, the KSE all-share price index edged lower to close week at 6,437.9 points, down from last week’s close at 6,457.8 points.