They expected regional markets to lose further ground in the coming couple of weeks due to disappointing US jobs data and the negative fallout of the Muslim fasting month of Ramadan.

“I believe the US jobs data and falling oil prices, both indicating sluggish global recovery, will put fresh pressures on Arab stock markets particularly in the Gulf region,” an Amman-based portfolio manager said.

“A clear correlation has developed over the past months between oil prices and the performance of regional stock exchanges, particularly in the Gulf region,” he said.

Saudi stocks lost fresh ground last week due to selling pressures, particularly from the petrochemical sector, in response to fluctuations on global markets and the retreat of oil prices to about $75 per barrel.

The Tadawul All Share Price Index (TASI) of the Arab world’s largest stock exchange shed 1.08 percent last week, closing at 6,121.06 points.

The Jeddah-based Saudi analyst Yassin Jafri believed the market lacked ”fresh incentives” after last month’s release of the semi-annual earnings.

He also attributed the sluggish performance of Saudi and other Gulf stocks to a liquidity crunch and the fasting habits during the month of Ramadan when investors prefer to focus on worship.

Jordanian shares were volatile last week due to persistent liquidity shortage and weak foreign buying, analysts said.

The all-share index of the Amman Stock Exchange gained 0.26 percent last week, to close at 2,254 points, which is near to a seven-year low.

Kuwaiti stocks moved sideways throughout last week but managed to close in the green, finding support mainly from the banking sector after news that the government was resorting to borrowing from local banks to finance a 30-billion-dollar development plan, analysts said.

Kuwait’s KSE all-share index departed the red area for the first time in three weeks to gain 0.16 percent on weekly basis, closing at 6,682 points.

United Arab Emirates shares were the main regional gainers last week despite worries over the repayment of the Dubai World debts.

The benchmark of the Dubai exchange gained 1.36 percent, to close week at 1,492 points, finding support from Emaar Properties and other real estate firms, analysts said.

The Abu Dhabi all-share index also went up 1.4 percent last week, closing at 2,506 points.

Egypt’s AGX30 index, which measures the performance of the market’s 30 most active stocks, gained 0.8 percent last week, closing at 6,389 points