They contended that last week’s rally prompted a spate of profit-taking and speculation amid the absence of new incentives.

“I believe the ambiguity surrounding the Arab geopolitical scene will continue to have a negative impact on regional markets,” Wajdi Makhamreh, CEO of the Amman-based Noor Investments brokerage, told Arab News.

“I expect the psychological factor will be the major driving element for Arab markets, with fundamentals receding to the back seat in the coming weeks,” he said.

Saudi shares were volatile last week led by the petrochemical and banking sectors.

The Tadawul All Share Index (TASI) of the Arab world’s largest stock exchange shed 0.6 percent on weekly basis, closing at 6,069 points after rising near to 6,400 points earlier in the week.

On a week-to-week basis, the sector activity was almost positive with 10 out 15 sectors closing with gains ranging from 0.55 percent by the Industrial Investment sector to 9.47 percent by the multi-investment sector.

On the other hand, the losing sectors for the week ranged from 0.02 by the agriculture and food industries sector to 1.73 by the banks and financial services sector, the Financial Transaction House (FTH) — licensed by the Capital Market Authority — said in its weekly market commentary.

Last week’s stock market turnover was SR29.43 billion as compared to SR26.83 billion for the previous week.

The top gainers for the week were the Food products Co. with again of 21.42 percent to close at SR15.30 and the Anaam International Holding Group Co. with gain of 21.06 percent to SR 45.40.

The top losers for the week on the other hand were the Al-Jouf Agricultural Development Co. with a loss of 13.62 percent to SR25.50 and the Red Sea Housing Services Co. with 7.92 percent loss to close at SR44.20.

Saudi analyst Mohammad Anqari attributed the market’s fluctuation mainly to profit taking and the return of speculators who sought to make benefit from last week’s rally.

“I believe investors have now absorbed the psychological impact and they are moving back to focus again on fundamentals,” he said.

“As traders awaited the first quarter results, I believe investment funds have now returned to the market causing a marked growth in the volume of transactions,” he added.

Kuwaiti shares also lost ground last week amid outside and local political concerns.

Kuwait’s KSE all-share index fell 0.3 percent last week, to close at 6,263 points, with downward pressure coming mainly from the investment, banking and insurance sectors.

The Kuwaiti Wodouh financial consultant attributed the decline to “rising uncertainty and risk” consequent on regional political developments.

The benchmark of the Dubai stock exchange closed week 1.4 percent in the green, at 1,471 percent points, whereas the Dubai exchange fell 1.2 percent, closing at 2,585 points.

The all-share index of the Amman Stock Exchange lost 0.63 percent on weekly basis, to close at 2,205 points.

Qatar’s benchmark also fell 0.5 percent, closing week at 8,185 points, while Bahrain’s all-share index closed 0.25 percent in the green, at 1,414 points.