AMMAN, 17 May 2008 — Arab stock markets were steady this week as investors looked for new moving factors to decide their positions in the coming weeks, financial investors said yesterday. “A mood of cautious optimism reigns at regional markets with investors looking for clues to help them decide their portfolio holdings in the coming weeks,” Nizar Taher, head of brokerage at the Jordan Ahli Bank, told Arab News.
“We believe regional stocks will continue to make benefit from surging crude prices which indicate that huge surplus petrodollars will accrue to oil-rich countries in the region this year,” he said. Saudi shares were volatile this week amid retreat in demand caused by “unjustified” hesitation on the part of investors, according to the Riyadh-based Bakheet Investment Group (BIG).
The Tadawul All Share Index (TASI) of the Arab world’s largest stock market edged higher this week closing at 9,783.19 points from 9,771.85 points last week.
TASI is currently 11.4 percent lower than the year’s start, the BIG report said.
The report expected the rising world prices of petrochemicals and fertilizers to have a positive impact on the share prices of the Saudi conglomerate, the Saudi Arabian Basic Industries Corp. (SABIC), and the Saudi Arabian Fertilizers Co. (SAFCO).
“We believe that the Saudi stock market was stressed by an unjustified volatile trend which runs counter to the positive outlook emanating from the robust economic engine in the country,” the BIG said.
The group expected the soaring oil prices and a rising growth rate in the country to have “a positive impact on the market’s performance” in coming weeks.
Jordanian shares kept up their upward trend this week, propelled by strong performance of blue chip firms particularly the Arab Bank, the Arab Potash Co., the Jordan Phosphate Mines Co. and the Jordan Petroleum Refinery.
“A positive mood dominates the Amman Stock Exchange (ASE) particularly with the availability of huge liquidity and the presence of foreign funds,” Taher said. The ASE all-share price index gained 0.23 percent this week, closing at 9,269 points up from 9,247 points last week.
Kuwait’s KSE all-share price index shed 1.3 percent this week, closing on Tuesday at 14,864 points from 15,053 points last week.
The benchmark price of the United Arab Emirates stock exchanges of Dubai and Abu Dhabi declined 1.4 percent this week, closing at 6,189 points from 6,274 points last week.
