AMMAN, 19 January 2008 — Arab stock markets were the scene this week of wide profit-taking operations, but financial analyst said yesterday a mood of “cautious optimism” still prevailed at regional bourses pending the release of annual results.
“Despite profit taking moves that came on the heels of tangible gains since the beginning of the year, we believe cautious optimism still prevails as investors monitor the 2007 results,” Nizar Taher, head of brokerage at the Jordan Ahli Bank, said.
The Tadawul All Share Index (TASI) of the Arab world’s largest stock exchange hit an 18-month high of 11,964 points this week but retreated under the pressure of profit-taking operations. TASI closed week at 11,543.98 points, down 0.9 per cent from last week’s close at 11,643.18 points.
TASI is currently 3.3 percent higher than the year’s start, according to the weekly report of the Riyadh-based Bakheet Investment Group (BIG).
The report expected the Saudi market to remain “relatively calm” next week pending the publication of yearly results of blue chip companies, particularly the Saudi Basic Industries Corp., the Saudi Telecom Co., and Al-Rajhi Banking Group.
Jordanian shares kept their upward pressure this week, propelled by blue chips and the banking sector particularly the heavyweight Arab Bank. The all-share price index of the Amman Stock Exchange gained 1.7 percent this week, closing at 8,289 points, up from 8,150 points last week, according to the ASE weekly report.
Kuwait’s KSE all-share price index gained 2.8 percent this week, closing at 13,386 points from 13,019 points last week. The all-share price index of the UAE stock exchanges shed 1.25 percent closing week on Thursday at 6,229.96 points.