AMMAN: Arab stock markets extended gains last week, buoyed by the G-20 summit, rallies at global bourses and edging up oil prices, financial analysts said yesterday.
“We believe that the G-20 summit in London and gains scored by the Wall Street and other world markets have a positive impact on regional stocks,” Nizar Taher, head of brokerage at the Jordan Ahli Bank said.
“Arab stock markets, particularly in the Gulf region, have affiliations with global markets and are set to benefit from the G-20 summit’s adoption of a $1.1-trillion package to help revive the world economy,” he said.
Taher contended that the rising oil prices and the luring low prices of Arab stocks would also help the recovery at the Middle East stock exchanges.
Saudi stocks rallied for the third week in a row last week amid a volatile performance with a limited range as listed firms prepared to issue their results for the second quarter.
The Tadawul All-Share Index (TASI) gained further 1.6 percent last week, closing at 4,717.38 points.
TASI is currently 1.8 percent lower than the year’s start, according to the weekly report of the Riyadh-based Bakheet Investment Group (BIG).
The report expected Saudi stocks to react favorably to the decisions of the G-20 summit and the gains scored recently by the US and other global markets.
“However, the Saudi stock market will continue its fluctuations while investors eye the upcoming corporate results, particularly of the petrochemical and banking sectors for the first quarter of the year,” the BIG said.
Jordanian stocks also extended gains this week with improved confidence mainly due to the easing of the credit crunch following new instructions by the Central Bank of Jordan in this respect, analysts said.
The all-share price index of the Amman Stock Exchange went up 1.44 percent last week, closing at 2,740 points, according to the ASE weekly report.
Kuwaiti shares also rallied for the second consecutive week despite a decision by the market’s administration to suspend trading of 35 firms for their failure to publish their balance sheets for the first quarter within the set deadline. The KSE all-share price index gained 2.3 percent last week, to close at 6,909 points from 6,753 points last week.
The all-share index of the United Arab Emirates stock exchanges of Dubai and Abu Dhabi gained 1.9 percent on Thursday, but closed week lower at 2,526 points from 2,554 points last week.
Egypt’s AGX 30 index, which measures the performance of the market’s 30 most active stocks, gained 2.8 percent last week, closing at 4,364 points.
