They expected regional markets to remain under pressure in the coming months from political turmoil as represented by the “Arab Spring” revolts and the standoff between Iran and western powers over Tehran’s nuclear program.

“I believe Middle East bourses will continue to suffer in the new year from the fallout of Arab uprisings and the political turmoil resulting from western threats to Iran,” Nizar Taher, chief of brokerage at the Jordan Ahli Ban k, told Arab News.

He said that pressures on Arab stock markets from the euro zone debt crisis were ”easing as investors feel assured that European policymakers were serious in finding sustainable solutions”.

Taher expected oil prices around 100 dollars a barrel would provide a catalyst for Arab stock markets in 2012 and beyond.

“Part of the huge surplus petrodollars accumulated by Arab oil exporters usually finds its way to regional stock markets as fresh investments,” he said.

In a report released last week, the Kuwait Financial Centre (Markaz) expected the earnings of firms listed on the bourses of the six member states of the Gulf Cooperation Council (GCC) to grow by 19 percent in 2012, topping $64 billion.

“This will bring the GCC corporate sector back to the levels reached in 2007 prior to the on-set of the global crisis,” the report said.

Saudi shares rebounded last week, driven by annual profit expectations of blue chips, particularly in the petrochemical and banking sectors, analysts said.

The Tadawul All-Share Index (TASI) gained 1.23 percent on weekly basis, closing at 6,486.41 points.

Saudi analyst Walid Abdul-Hadi expected the market’s benchmark to push higher in the coming couple of weeks as investors monitor the yearly earnings of leading firms, foremost the Saudi Basic Industries Corp. (SABIC).

“I don’t expect TASI to drop below the 6,410 level, because the market makers will seek to comprehend the annual earnings particularly of leading companies,” he said.

Kuwait’s KSE all-share index gained 0.35 percent this week, to close at 5,747 points.

The benchmarks of the United Arab Emirates stock exchanges of Dubai and Abu Dhabi fell by 1.6 percent on weekly basis, to close respectively at 1,328 points and 2,361 points.

Qatar’s index plunged by 2.1 per cent last week, closing at 8,699 points while Bahrain’s benchmark closed week 0.4 per cent in the red at 1,133 points.

Jordanian shares lost fresh ground last week due to shrinking liquidity and continuing negative fallout on the Jordanian economy from the Syrian uprising, Taher said.

The all-share index of the Amman Stock Exchange (ASE) shed 1.1 percent last week, closing at 1,955 points.
 
However, Taher expected the government’s appointment of Mohammad Tash as new chief of the Jordan Securities Commission (JSC) to spur the Jordanian stock market in the coming weeks.

The Egyptian shares were the main regional gainer last week, mainly due to promises by the United States and the International Monetary Fund (IMF) to give a hand to the faltering Egyptian economy, analysts said.

The successful conclusion of general elections also prompted foreign and Arab buying of Egyptian shares last week, they added.

Egypt’s AGX 30 index, which measures the performance of the market’s 30 most active stocks, climbed 3.5 per cent on weekly basis, closing at 3,778 points.