The Tadawul All-Share Index (TASI) gained 1.83 percent last week, closing at 6,110.98 points.

The rise was led by the petrochemical sector, particularly the Saudi Basic Industries Corp. (SABIC), analysts said. SABIC shares closed 3.21 percent higher at SR88.50.

Wataniya Insurance Company was the top gainer last week as its shares jumped 326 percent to SR42.60, followed by Solidarity Saudi Takaful Co. Solidarity shares surged 22 percent to SR12.20.

Saudi Electricity Co. (SEC) shares increased 21.50 percent to SR13 as the company announced last week that it will increase charges for government, commercial and industrial users as of July 1. The increase will add more than SR3 billion to its annual revenues and boost its profitability.

The other major gainers last week were Saudia Dairy & Foodstuff Co. (up 11.30 percent) and Etihad Atheeb Telecommunication Company (9.18 percent).

Shares in United Cooperative Assurance Co. plunged 13.84 percent to SR24.90 last week.

The value of Saudi traded shares fell to SR17.65 billion last week compared to SR19.94 billion in the previous week.

Arab stock markets were volatile last week due to plunges on global markets, persisting European sovereign debt crisis and unstable oil prices, financial analysts said on Friday.

However, they predicted that regional stocks could rebound this week due to the pickup of world markets on Thursday in response to strong Chinese export data and the subsequent rise of crude prices.

"Middle East stocks have come under psychological pressure from global markets and the euro zone debt ordeal, which is illogical because there is no correlation between what is happening in Europe and our region," Nizar Taher, head of brokerage at the Jordan Ahli Bank, said.

"Regional shares also suffered due to the fluctuating oil prices, a liquidity crunch and sell-off by foreign investors to cover their losses elsewhere," he said.

However, Taher expected Arab stocks to rebound this week in response to world market gains, improving oil prices and receding European debt fears that found expression in the improving exchange rate of the euro.

Jordanian shares deepened losses last week amidst reports of shrinking liquidity and hesitation to take new positions by both local and foreign investors, Taher said.

"However, we believe that the worst is now behind us as the prices of stocks have fallen to historical lows where they represent buy opportunities," he added.

The all-share index of the Amman Stock Exchange fell 1.2 percent last week, closing at a six-year low of 2,365 points, according to the ASE weekly report.

Kuwaiti stocks lost fresh ground last week in thin trading and receding confidence on the part of investors. Kuwait's KSE all-share index shed 1.4 percent last week, to close at 6,640 points.

"The liquidity crunch is the major factor that concerns traders at this time," said Mohammad Ashkanani, a Kuwaiti analysts.

The United Arab Emirates shares also suffered amidst reports of continued selling by foreign investors.

The benchmarks of the Dubai and Abu Dhabi stock exchanges shed 1.1 percent and 1.8 percent to close respectively at 1,514 points and 2,526 points.

Egyptian shares were the region's major loser last week due to sell-off by foreign funds.

Egypt's AGX30 index, measuring the performance of the market's 30 most active stocks, plunged 4.2 percent last week, to close at 6,243 points.

The GulfBase GCC Index slipped slightly to 3,599.43 points. The value of GCC traded shares fell by 12.38 percent to $5.68 billion and volume declined by 13.99 percent to 2.34 billion of shares.

Meanwhile, the GCC companies posted robust earnings of $11.4 billion in the first quarter, a growth of 120 percent QoQ and 40 percent YoY.

According to Kuwait Financial Centre (Markaz) report, Saudi Arabia's corporate earnings grew 68 percent to $4.7 billion in the first quarter. The Kingdom's overall earnings received a boost from the commodities sector, led by SABIC, which reported profits of $1.4 billion, backed by higher volumes and prices; versus a loss of $260 million in the first quarter of 2009. On the flip side, profits from the banking sector which accounted for 33 percent of total earnings in the first quarter contracted 10 percent to $1.5 billion, as provisioning rose.

The Markaz report said Kuwait's corporate profits grew to $1 billion, as the financial sector showed signs of revival after a dismal 2009.

Earnings for Oman and Bahrain were down 16 percent and 10 percent respectively.