JEDDAH/AMMAN: Saudi shares extended losses last week mainly due to the political tension between Iran and the West and the turmoil at world stock markets.

The Tadawul All-Share Index (TASI) shed 4.96 percent last week, closing at 8,998.28 points from 9,467.68 points in the previous week. TASI is currently 18.5 percent lower than the year’s start.

“The Saudi market retreated despite the second quarter results which were deemed better than experts expected, particularly the banking and petrochemical sectors,” the Riyadh-based Bakheet Investment Group (BIG) said in its weekly report.

“With further good results being announced, we believe this will bolster investors’ confidence and help reverse the downward trend,” it added.

The stock market turnover rose slightly last week to SR38.61 billion compared to SR35.62 billion in the previous week.

Saudi Basic Industries Corp. (SABIC) was most active by value as shares worth SR3.12 billion changed hands last week. SABIC shares dropped over 9 percent last week to SR130.

Saudi Indian Company for Cooperative Insurance was the top gainer last week as its shares jumped 34.06 percent to SR108.25, followed by Malath Cooperative Insurance and Reinsurance Company. Malath shares increased 10 percent to SR99.

Shares in Al-Ahlia Insurance Co. plunged 17.22 percent to SR74.50 last week.

In the telecommunication and information technology sector, shares in Saudi Telecom Co. (STC), Etihad Etisalat and Zain KSA fell 4.84 percent, 4.69 percent and 7.14 percent respectively.

Arab stock markets also plunged last week under geopolitical pressures and renewed concerns of US economic slowdown, financial analysts said yesterday.

However, they believed the adamantly surging oil prices would boost regional bourses in the medium and long terms.

“Despite expectations of good semi-annual results, regional markets were last week the scene for panic sell-offs, apparently in response to political developments relating to the standoff over the Iranian nuclear file,” Wajdi Makhamreh, chief operating officer of the Sanabel International Holding, said.

Makhamreh and other analysts also attributed the decline at Arab bourses last week to losses incurred by global stock markets in response to renewed US recession concerns.

Nevertheless, he said, regional stocks were poised to rebound in the coming weeks, buoyed by half-yearly results and the huge surplus petrodollars due to accrue to Arab oil exporting countries. “Big funds have started sending their representatives to the region to appraise the emerging investment opportunities,” Makhamreh said.

Jordanian shares dropped last week in what Makhamreh described as a “deep correction move” which was led by strategic stocks mainly the Jordan Petroleum Refinery, the Jordan Phosphate Mines Co. and the Arab Potash Co.

The All-Share Price Index of the Amman Stock Exchange shed 4.08 percent, closing at 4,556 points compared with previous week’s close at 4,750 points, according to the ASE weekly report.

Kuwaiti stocks slid for the third week in a row in what analysts described as concerted downward pressure on prices by leading funds.

The KSE All-Share Price Index declined 3.1 percent, closing at 14,895 points from 15,376 points previous week.

The All-Share Price Index of the United Arab Emirates stock exchanges shed 1.9 percent, closing week at 6,011 points from 6,134 points previous week.

The GulfBase GCC Index declined 3.49 percent to 6,686.92 last week. The value of GCC traded shares fell 3.52 percent to $16.95 billion and volume plunged 14.14 percent to 5.33 billion of shares.