The Saudi market was the main loser this week reflecting worries over falling oil prices, while the Egyptian stock exchange was the key gainer led by telecom and financial groups, they said.

The analysts expected the sluggish trading to continue at regional markets until the end of the month of Ramadan around Sept. 10.

“I believe the slump on Arab stock exchanges will persist until the end of Ramadan, barring any dramatic developments on global markets,” an Amman-based portfolio manager said.

“We think oil prices will remain a key factor that help to decide the trend of regional markets for the coming weeks,” he said.

Crude prices fell for the third week in a row to around 73 dollar per barrel on Friday in response to an expectedly retreating demand due to weak economic indicators particularly in the United States.

Saudi shares were volatile last week, reflecting movement of oil prices, shrinking liquidity and worries of global markets, analysts said.

The Tadawul All Share Index (TASI) of the Arab world’s largest stock exchange shed 1.96 percent last week, closing at 6,001.24 points.

The week had a negative closing and witnessed four negative trading sessions on Saturday, Sunday, Tuesday and Wednesday for the week. On a week to date basis, TASI made a consolidated loss of -1.96 percent. The liquidity for the week came in at SR7.2 billion as compared to SR10.5 billion of last week, the Financial Transaction House (FTH) said in its daily market commentary.

At a certain juncture, TASI fell about 1 percent below the 6,000-point psychological barrier with pressure from the petrochemical sector in what analysts described as profit taking.

The Amman Stock Exchange was also the scene for narrow fluctuations last week that reflected a persistent liquidity crunch and lack of confidence, analysts said.

The ASE all-share index shed 0.2 per cent last week, closing at 2,250 points, according to the market’s weekly report.

Kuwaiti stocks were volatile last week due to profit taking tactics despite reports of fresh liquidity entering the market.

The KSE all-share index shed 0.54 per cent on weekly basis and analysts said the market found support from the banking and investment sectors.

“Optimism has apparently returned to the market after the government dropped hints it wants local banks to play a role in financing a development plan,” according to the weekly report of the Gulf Invest group.

It attributed the market’s decline at the end of the week to a profit-taking move.

The United Arab Emirates shares were steady last week, but failed to live up to leaks that the Dubai World was planning to sell some of its assets for repayment of its debts.

The benchmark of the Dubai exchange gained 0.36 percent on weekly basis, closing at 1,497 points, while the Abu Dhabi index shed 0.23 percent, closing at 2,501 points.

“The leaks have been apparently insufficient to restore investors’ confidence in the market,” said Samir Jaouni, director general of the Dubai-based Middle East brokerage.

Egypt’s AGX30 index, which measures the performance of the market’s 30 most active stocks, gained 1.3 percent, closing at 6,474 points.

The Egyptian bourse found support from Orascom Telecom and the Hermes financial group, analysts said.