AMMAN: Arab stock markets reflected mixed performance last week mainly in response to retreats at global markets, but financial analysts said yesterday they expected regional bourses to rally this week, drawing momentum from rapidly rising oil prices and the improving indicators of the world economy.
“I believe Arab markets, particularly in the Gulf region, will receive an impetus from climbing crude prices and latest rallies on world bourses,” Nizar Taher, chief of brokerage at the Jordan Ahli Bank, told Arab News.
Oil prices surged over the past 24 hours after OPEC oil ministers decided to maintain output unchanged at current output amid signs the global economy was recovering.
“I think Arab stocks will remain responsive to what is taking place on global markets and to new indicators about the development of the world’s major economies,” Taher said.
“Higher oil prices mean larger surplus petrodollars that seek investment outlets in the region, foremost at stock markets,” he added.
Saudi shares lost ground for most of the week, led by banking and petrochemical sectors, but reversed their downward trend on Wednesday due to positive news about the US economy.
The Tadawul All-Share Index (TASI) lost 4.3 percent last week, closing at 5,789.43 points.
TASI is currently 20.5 percent higher than the year’s start, according to the weekly report of the Riyadh-based Bakheet Investment Group (BIG).
The report attributed last week’s decline mainly to plummeting prices of insurance companies that followed weeks of speculative trading and “unjustified gains.” The BIG expected the Saudi market to be “steady this week as investors regain confidence from improving global economic conditions and surging oil prices.”
The all-share price index of the Amman Stock Exchange shed 0.96 percent last week, closing at 2,836 points, according to the ASE weekly report. The KSE all-share price index rose 3.2 percent last week to close at 8,019 points.
The benchmark prices of the United Arab Emirates stock exchanges of Dubai and Abu Dhabi climbed 7.5 percent and 1.8 percent, closing respectively at 1,792 points and 2,659 points.
Egypt’s AGX30 index shed 0.6 percent last week, closing at 5,665 points.
