AMMAN, 12 January 2008 — Middle East stock markets kept their upward trend last week and financial analysts said yesterday they expected regional bourses to receive an additional momentum from US President George W. Bush’s current tour of the region.

“I believe Arab stock markets stand to gain from Bush’s trip, particularly if it succeeds to bring about a breakthrough in the decades-old Arab-Israeli conflict,” Wajdi Makhamreh, CEO of the Amman-based Al-Sanabel International brokerage company, told Arab News.

“The positive gestures emanating from Bush’s trip is expected to reflect positively on regional bourses in the coming weeks,” he said.

Bush arrived in Kuwait yesterday to start a tour of Gulf countries.

However, Makhamreh expected stock markets to witness profit-taking moves in the coming couple of weeks in the wake of the strong gains they recorded since the beginning of the year.

“Markets are in a cautious mood as investors await the release of annual results to re-build their positions,” he said.

He expected fresh liquidity to arrive at Arab stock exchanges as reports of recession in the United States and other Western economies prompt investors to shift their activity to emerging markets.

Saudi shares rebounded strongly last week, buoyed by expected profits of blue chip firms, particularly the Saudi Basic Industries Corp. (SABIC), and soaring oil prices.

The Tadawul All-Share Index (TASI) climbed 6.9 percent last week, closing at 11,643.18 points from 10,892.64 points previous week.

“Positive economic indicators fueled by soaring oil prices are at the heart of the surge in investors’ confidence,” the Riyadh-based Bakheet Investment Group (BIG) said in its weekly report.

The BIG expected the Saudi stock market to witness a downward “correction on a limited scale” in the coming week, given the robust performance of Saudi shares over the past months.

Jordanian shares also retained their upward trend last week, propelled by blue chip stocks particularly the Arab Bank, the Arab Potash Co., the Jordan Phosphates Mines Co. and the Jordan Petroleum Refinery.

The all-share price index of the Amman Stock Exchange gained 3.67 percent last week, to close at 8,150 points compared with previous week’s close at 7,862 points, according to the ASE weekly report.

Kuwait’s KSE all-share price index gained 3.3 percent last week, closing at 13,019 points from 12,602 points previous week.

The breaking of the 13,000-point psychological barrier was attributed by analysts in Kuwait to strong demand by leading investors and funds on banking stocks due to expectations that Kuwaiti banks prepared to declare strong profits for 2007.