AMMAN: Arab stock markets reflected mixed performance last week, as investors reacted differently to latest indicators about the state of the world economy and developments on global bourses, financial analysts said Friday.

They expected regional markets to remain volatile during the rest of the fasting month of Ramadan as investors prefer to stay on the sidelines pending new moving factors.

"I believe regional markets will be steady in the coming couple of weeks until the end of Ramadan, barring any tangible developments in the economic scene in the United States and other leading economies," an Amman-based portfolio manager told Arab News.

"Arab bourses, particularly in the Gulf region, continue to come under psychological pressure from global markets and reports about the possibility of the world economy coming out of the recession," he said.

He expected oil prices to continue to have an impact on Arab markets while investors monitor the third quarter results.

Saudi shares lost ground last week, led by petrochemical and banking sectors, due to heavy selling pressures and shrinking liquidity.

The Tadawul All-Share Index (TASI) shed 2.52 percent last week, closing at 5,617.31 points.

TASI is currently 17 percent higher than the year's start, according to the weekly report of the Riyadh-based Bakheet Investment Group (BIG).

It noticed that the Saudi Basic Industries Corp. (SABIC) lost 3.2 percent due to declining prices of petrochemical products on world markets.

Banking shares went down despite reassurances from the Saudi Arabia Monetary Agency (SAMA) that the country's banking system was immune to repercussions from the fallout of two Saudi groups currently facing financial difficulties, the report said.

The BIG expected the Saudi market to be "relatively stable" in the coming weeks in absence of dramatic changes in oil prices.

"In addition, investors will be awaiting the third quarter results, which may boost their confidence in the market," the report said.

Jordanian shares firmed last week, deriving momentum from the decision by the Jordan Securities Commission to lift the ban imposed a month ago on three key traders who were accused of fraudulent practices, analysts said.

They also reported a comeback to the market by foreign funds particularly from the Gulf region.

The all-share price index of the Amman Stock Exchange climbed 4.54 percent last week to close at 2,605 points, according to the ASE weekly report.

Kuwait's KSE all-share index shed 2.2 percent, closing week at 7,788 points.

The United Arab Emirates stock exchange of Dubai gained 1.7 percent last week to close at 1,920 points, while the Abu Dhabi stock exchange edged higher closing at 2,888 points compared with previous week's close at 2,867 points.

Egypt's AGX30 index, measuring the performance of the market's 30 most active stocks, declined 1.7 percent, closing at 6,616 points.