They expected speculative trading to dominate regional markets in the coming couple of weeks in the absence of fresh moving factors.

”I believe the failure of the European policymakers to come to grips with the sovereign debt crisis will continue to have its bite on Middle East markets,” Nizar Taher, chief of brokerage at the Jordan Ahli Bank, told Arab News.

”I think the fallout of the euro zone debt problem on Arab bourses has been acceptable so far, but the danger lies in predictions that the crisis could spread to new uncontrollable dimensions,” he said.

Taher and other analysts expected any escalation in the rhetoric war between Iran and the Western powers over Tehran’s nuclear program could push up oil prices sharply and have negative repercussions on regional stock markets.

Saudi stocks edged higher last week with the Tadawul All-Share Index (TASI) closing at 6,219.95 points, compared with the previous close at 6,215.79 points.

The value of Saudi traded shares reached SR25 billion last week.

Saudi analysts expected the benchmark to move sideways in the coming couple of weeks as investors focus attention on steps being taken by the European policy makers to address the aggravating debt debacle.

The Saudi market will also be awaiting the release of the public budget which is expected to provide lavish spending that directly affects a number of sectors, particularly the construction industry and banking, Riyadh-based analyst Rashed Fouzan said.

Earlier this year, Custodian of the Two Holy Mosques King Abdullah unveiled a plan for the world’s largest oil exporter to spend $134 billion in the coming five years.

Fouzan expected speculative trading to dominate the Saudi market in the coming few weeks, saying ”the annual earnings of listed firms will be crucial in lifting the benchmark” toward the 7,000 points.

Kuwait’s KSE all-share index closed week unchanged at 5,880 points. Analysts believed Kuwaiti stocks would come under pressure this week as a result of the renewed political turmoil in the country.

The benchmarks of the United Arab Emirates stock exchanges of Dubai and Abu Dhabi closed 0.4 percent and 0.3 percent in the red last week, respectively at 1,379 points and 2,474 points.

Qatar’s index gained 1.3 percent on weekly basis, closing at 8,744 points, while Bahrain’s benchmark ended week 1.1 per cent up at 1,168 points.

Jordanian stocks rebounded last week, buoyed by the third quarter earnings of blue chips, particularly the Arab Potash Company and the Jordan Phosphates Mines Company, Taher said.

The all-share index of the Amman Stock Exchange (ASE) gained 0.8 percent on weekly basis, closing at 2,027 points.

Taher expected the unrest in neighboring Syria would reflect negatively on Jordanian stocks in the short term.

Egyptian stocks emerged as the main loser in the Middle East last week due to political tension arising from calls for a huge rally on Friday to protest a controversial document proposed by the government.

Egypt’s AGX 30 index, which measures the performance of the market’s 30 most active stocks, plunged 4.4 percent on weekly basis, to close at 4,178 points.

The approaching general elections set for Nov. 28 and concerns that Islamists may emerge triumphant are also putting additional pressure on Egyptian stocks, analysts said.