AMMAN, 15 January 2005 — Arab stock markets are expected to receive a “fresh boost” by the publication of more 2004 results of leading firms in the coming couple of weeks, but short-term downward corrections cannot be ruled out, analysts said yesterday.

Therefore, they told Arab News, investors should be “vigilant” to the dividends and bonus share distributions that could be decided by the managements of the relevant firms. “I believe the mood is still positive at regional stock markets despite minor retreats experienced this week,” Investment Manager at the Housing Bank for Trade and Finance Saqr Abdul Fattah said.

The all-price index of the Amman Stock Exchange (ASE) shed 0.69 percent this week, closing at 4,527 points compared to 4,559 percent last week.

Dealers attributed the decline to a profit-taking move that focused on the industrial sector, the index of which slipped 4.16 percent.

The Saudi shares showed noticeable volatility this week affected by released balance sheets of some listed firms.

The all-share price index of the largest Arab bourse lost 1 percent this week, to close on Thursday at 8,061.99 points, after plunging to as low as 7,915.30 points on Monday due to “worries over recently announced quarter 4 results”, according to the Bakheet Financial Advisors (BFA).

“It seems that selling by some speculators was due to their unfounded fears of declining profits” of the rest of stocks, the BFA said in their weekly report.

“Furthermore, the market was affected by volatile oil prices” particularly the petrochemical-related stock of the leading Saudi Basic Industries Corporation (SABIC) that slipped 1.6 percent this week, it added.

The BFA expected the trend of the Saudi stock market to be decided by fresh Q4 2004 corporate results to be published next week. It also advised investors to be “cautious to the volatile moves in oil prices” that will inevitably affect the revenues of Saudi Arabia, the world’s largest crude exporter.

In Kuwait, the KSE all-share price index edged lower closing week at 6,453 points, down from last week’s closing at 6,463 points.