AMMAN: Arab stock markets lost further ground last week as speculation dominated trading and investors, obsessed with word recession fears, looked for fresh incentives, financial analysts said yesterday.

They expected regional bourses to remain fragile in the coming weeks pending the adoption of the new stimulus package by the US administration of President Barack Obama and further news about the 2008 performance of listed firms.

“I believe speculation and the search for new moving elements will dominate regional markets in the coming weeks as concerns of the global recession continue to ride roughshod on investors’ minds,” Wajdi Makhamreh, chief operating officer at the Amman-based Sanabel International Holding, told Arab News.

“I think negative factors will continue to have the upper hand with investors preferring short-term deals rather than long-term investments,” he said.

Makhamreh also expected the movement of oil prices to have a direct impact on regional stock markets through their effect on the volume of liquidity and surplus petrodollars seeking investment outlets.

Saudi shares fluctuated within a narrow range last week. The Tadawul All-Share Index (TASI) closed at 4,794.56 points, almost unchanged from last week’s close.

Jordanian stocks lost fresh ground last week amid reports of less-than-expected results of listed firms and shrinking liquidity due to credit squeeze by banks, Makhamreh said.

The all-share price index of the Amman Stock Exchange shed 1.76 per cent this week, closing at 2,656 points from 2,704 points last week, according to the ASE weekly report.

Kuwaiti shares closed in the green last week, buoyed by a rescue plan that was adopted by the Cabinet and passed to the National Assembly for approval next week, according to the weekly report of the Gulf Invest Company.

The report also attributed the rebound partly to the 2008 good profits of blue chip firms and proposed dividends.

Kuwait’s KSE all-share price index gained 2.25 percent last week, to close on Thursday at 6,916.60 points.

The performance of the United Arab Emirates stock markets was mixed last week. The all-share price index of the Dubai exchange fell 1.71 per cent on Thursday to close week at 1,433 points, while the Abu Dhabi stock exchange’s benchmark closed in the green rising 1.74 per cent at 2,174 points.