They, however, believed the strong macroeconomic indicators of Gulf countries, high oil prices and upbeat predictions about the second quarter results would prop up regional bourses in the medium and long terms.

”I believe the stability and economic strength enjoyed by the Gulf Cooperation Council (GCE) countries will help overcome the negative effects on markets of uprisings in other Arab countries,” Nizar Taher, chief of brokerage at the Jordan Ahli Bank, told Arab News.

He said high oil prices and the huge surplus petrodollars due to accrue to GCC countries would prop up Middle East markets.

Taher expected investors to focus in the coming weeks on the semi-annual earnings of listed firms due to start coming out early in July.

Until then, analysts believed that regional bourses would be dominated by speculative trading and profit taking moves pending new clues to the direction of markets in the coming stage.

Saudi shares were volatile last week due to profit taking and worries over the world economic recovery.

The Tadawul All Share Index (TASI) of the Arab world’s largest stock exchange gained 0.27 percent on weekly basis, closing at 6,741 points, and receiving support from the energy and retail sectors.

Kuwaiti stocks extended losses last week amid reports of a liquidity crunch and political uncertainty.

Kuwait’s KSE all-share index shed 0.56 percent on weekly basis, closing at 6,338 points.

According to a report by the Kuwait Asset Management Company (KAMCO), about 40 percent of listed firms suffered from liquidity shortages in a manner that could affect their operation.

The benchmarks of the United Arab Emirates stock exchanges of Dubai and Abu Dhabi closed 2 percent and 2.86 percent in the green after weeks of losses, respectively at 1,566 points and 2,672 points.

Jordanian shares plunged further last week due to persistent lack of confidence and receding foreign buying, Taher said.

He, however, expected Jordan’s proposed admission to the GCC would help prop up the ailing Amman Stock Exchange.

The ASE all-share index shed 1.26 percent last week, closing at 2,152 points.

Egyptian shares suffered last week due to a package of economic policies adopted by the country’s military rulers, including the imposition of progressive taxes on profits of businesses, analysts said.

Egypt’s AGX 30 index, which measures the performance of the market’s 30 most active stocks, plunged 2.6 percent on Thursday as investors scrambled to sell their holdings, analysts said.

On Weekly basis, the Egyptian benchmark lost 0.9 percent, to close week at 5,362 points.