They expected Thursday’s plunge in oil prices on retreating prospects of world recovery would have a negative impact on regional markets next week.

”I believe yesterday’s drastic decline of crude prices on growing fears about global economic recovery will reflect negatively on Arab stock markets next week,” an Amman-based portfolio manager told Arab News.

”I think investors will now return to the speculative behavior after markets comprehended the profits of the first quarter, particularly of blue chips,” he said.

Oil prices fell by 10 percent on Thursday, to less than 110 dollars per barrel, on stronger dollar and weak economic data from Europe and the United States.

Saudi shares were volatile last week as investors sought know the impact on markets of the killing of the Al-Qaeda leader Osama Bin Laden, a former Saudi tycoon, by a US secret assault team in Pakistan, analysts said.

The Tadawul All Share Index (TASI) of the Arab world’s largest stock exchange shed 0.6 percent on weekly basis, led by the petrochemical, banking and telecom sectors, and closing at 6,682.61 points.

”I expects markets to be calm and the benchmark to be flat in the coming days after the release of all quarterly results, particularly those of leading firms,” Saudi analyst Rashed Fouzan said.

He also expected speculative trading of small caps to dominate transactions at the Saudi stock exchange in the coming few weeks.

Kuwaiti stocks were stable last week as first quarter results of the banking and the telecom firms helped to bolster prices despite tangible shrinkage of liquidity, analysts said.

Kuwait’s KSE all-share index closed week marginally lower at 6,516 points, compared with earlier week’s close at 6,522 points.

The benchmark of the Dubai stock exchange fell 1.6 percent last week, to close at 1,607 points.

Qatar’s all-share index shed 1.1 percent on weekly basis, to close at 8,452 points.

Bahrain’s benchmark declined 0.8 percent last week, closing at 1,393 points.

Jordanian shares were volatile last week amid persistent lack of confidence and liquidity crunch, analysts said.

The all-share index of the Amman Stock Exchange gained 0.3 percent last week, closing at 2,205 points, according to the ASE weekly report.

Egypt’s AGX 30 index, which measures the performance of the market’s 30 most active stocks, fell 1.3 percent last week, to close at 4,937 points, due to foreign and local selling.

Meanwhile, the board chairman of the Egyptian stock exchange Mohammad Abdussalam disclosed recently that he was leading a promotional campaign to lure attract foreign investments to the Egyptian stock market.

He said that he planned to visit the oil-rich Gulf countries, the US and the United Kingdom to explain the investment opportunities existing in Egypt after the uprising that toppled the regime of President Hosny Mubarak in February.