They expected regional stocks to gain further ground in the coming weeks, given crude prices over an 18-month high of $85 per barrel.
“I believe oil prices will continue to represent the main moving factor for Middle East markets in the coming weeks,” Wajdi Makhamreh, CEO of the Amman-based Noor Investments brokerage, said.
“I think last week’s positive US data for jobs and factory activity will boost hopes of sustainable world recovery and, consequently, demand for oil,” he said.
Makhamreh pointed out that higher oil prices would lead to larger surplus petrodollars that seek investment outlets including stocks.
“Investors will also be eying first quarter results and geopolitical factors, foremost the showdown between Iran and the world’s key powers over Tehran’s nuclear file,” he said.
However, he said that the outlook for rescheduling Dubai World debts would continue to have its impact on regional markets, particularly in the oil-rich Gulf area.
Gulf stock markets scored gains in the first quarter of the year ranging between 2.21 per cent for the Dubai market and 11.1 per cent for the Saudi bourse, the Arab world’s largest stock market.
Kuwait’s KSE all-share index also gained 7.54 per cent in the first three months of the year.
Analysts attributed the first quarter gains to higher oil prices, improving macroeconomic indicators and better performance of listed firms.
“I believe there has been a gradual increase in liquidity over the past period indicating the return of confidence to markets, which is an important factor, Khalid Harethi, head of the Riyadh-based Arak Consultancy and Studies Center, said.
“I think the Saudi market has been on a positive course since the beginning of the year with investors dealing positively with results of firms that suffered as a result of the global financial crisis,” he added.
The Tadawul All Share Index (TASI) of the Saudi stock exchange gained 0.7 per cent last week, closing at 6,801.01 points.
The Jeddah-based Financial Transaction House (FTH) said last week that the market made a slight increase of 0.65 percent on a week on week basis and closed at 6801.01
points.
In terms of sectors, the market on a weekly basis only saw negative sector closes in five sectors ranging from -0.25 by the building and construction sector to -1.09 by the cement sector. The gaining sectors for the week ranged from a gain of 0.18 percent by the hotel and tourism, to a gain of 2.96 percent by the Insurance sector.
With regards to individual company movement, the top gaining companies for the week were Tawuniya and
Medgulf, which saw weekly gains of 11.89 percent and 8.42 percent respectively. The biggest declining companies were
Eastern Province Cement Company and Saudi Fransi Cooperative Insurance, which saw weekly loss of -5.67 percent and -5.60 percent respectively.
The Amman Stock Exchange rallied last week led by blue chips, particularly the Taameer Holdings on reports that it was about to get a syndicated loan of more than $60 million, analysts said.
The ASE all-share index gained 2.63 per cent last week, closing at 2,531 points, according to the market’s weekly report.
Kuwaiti stocks edged lower last week due to profit taking despite the declaration by the Zain mobile group that it posted $677 million as profits in 2009.
Kuwait’s all-share index closed last week at 7,475 points compared with last week’s close at 7,489 points.
The Dubai stock exchange gained 0.8 per cent last week, closing at 1,860 points, while the Abu Dhabi benchmark shed 1.6 per cent, to close week at 2,859 points.
Egypt’s AGX30 index, measuring the performance of the market’s 30 most active stocks, climbed 1.4 per cent last week due to extensive foreign buying, to close at 6,863 points, analysts said.
