The decline was led by Saudi shares, reflecting concerns that the military developments between the two Korean states could affect Saudi Arabia's oil exports to the region, they added."I believe both the euro debt crisis and the military developments in the Korean Peninsula have negatively affected stock markets in the oil-rich Gulf region, which maintains close ties with world economies," Wajdi Makhamreh, CEO of the Amman-based Noor Investments brokerage, told Arab News."The petrochemical sector appeared as the key loser due to fears that the military duels between North Korea and South Korea could have a prolonged effect on Gulf crude exports to the Far East," he added.Makhamreh expected regional markets to come under fresh pressures in the coming couple of weeks, as investors cast doubt on the success of the Irish bailout plan.However, he pointed out that oil prices "will remain one of the key moving factors" for Middle East stock markets.Saudi stocks plunged last week on losses incurred by the petrochemical and banking sectors, mainly the Saudi Arabian Basic Industries Corp. (SABIC).The Tadawul All-Share Index (TASI) of the Arab world's largest stock exchanges shed 2.36 percent on weekly basis, closing at 6,291.30 points.Jordanian shares were volatile due to "absence of confidence" and weak foreign buying, Makhamreh said.Other analysts expected the appointment of Fares Sharaf as a new governor of the Central Bank of Jordan could have a positive impact on the faltering Amman Stock Exchange (ASE).Sharaf, who is expected to spur lending by banks, succeeded Umayya Tougan, who resigned on Thursday at the end of his four-year office term.The ASE all-share index closed week edging higher at 2,373 points, according to the market's weekly report.Kuwait's KSE all-share index lost 0.32 percent last week, led by the investment and real estate sectors, analysts said.The Kuwaiti benchmark closed week at 6,928 points, which represents a gain of 22 percent since the beginning of the year, according to the weekly report of the Kuwait Financial Center.The United Arab Emirates shares were mixed last week. The benchmark of the Dubai stock exchange shed 0.2 percent, closing at 1,682 points, whereas the Dubai bourse gained 0.29 percent, with weekly close at 2,757 points.Egypt's AGX 30 index, measuring the performance of the market's 30 most active stocks, gained 0.2 percent on weekly basis, to close at 6,838 points, spurred by foreign buying, analysts said.