According to preliminary reports, the earnings of listed Saudi firms posted a 23.6 percent increase to $5.3 billion, in the second quarter compared with the same period of 2009.
The Tadawul All-Share Index (TASI) shed 1.37 percent last week, closing at 6,089.95 points due to what analysts described as profit-taking, lack of confidence and keenness to avert further losses consequent on world market fluctuations.
The value of Saudi traded shares dropped to SR11.45 billion last week compared to SR15.16 billion in the previous week.
"I believe Saudi firms are now back to posting gains after the catastrophic situation that gripped the world economy and the (Middle East) region," said Bishr Bakheet, CEO of the Riyadh-based Bakheet Investment Group.
He expected Saudi stocks to be affected in the coming weeks by oil prices and world developments, including the European sovereign debt problem.
Arab stock markets ended last week mixed as investors continued to come under psychological pressure from global markets and indecisive indicators of world recovery, financial analysts said Friday.
However, they expected Middle East markets to rebound next week in response to gains scored by Wall Street and European bourses on Thursday and Friday following reports of strong earnings by US and European businesses and the record jump in German business sentiment.
"I believe regional markets will retain their psychological linkage with global markets for some time to come," Wajdi Makhamreh, CEO of the Amman-based Noor Investments brokerage, said.
"Therefore, I think Arab bourses will react positively in the coming weeks to any improvement in economic indicators in the United States and key European economies," he said.
Makhamreh also expected the rising oil prices to have a positive impact on Arab stocks, particularly in the Gulf area.
Crude prices hit a three-month high near $80 per barrel on Friday.
The Amman Stock Exchange continued to reflect weak performance last week due to liquidity crunch and sluggish demand, analysts said.
The ASE all-share index slipped 2.1 percent last week, closing at 2,308 points, according to the market's weekly report.
Kuwaiti stocks scored gains last week, deriving momentum from bank earnings and official statements about government plans to spur the national economy.
The reports sparked an intensive buying activity, according to the weekly report of the Kuwaiti investment group, Gulf Invest.
Kuwait's KSE all-share index gained 1.07 percent on weekly basis, closing at 6,583 points.
United Arab Emirates stocks scored modest gains last week amid reports that Dubai World was facing obstacles in reaching agreement with its creditors.
The benchmark of the Dubai stock exchange inched higher closing at 1,529 points from the earlier week's close at 1,520 points, while Abu Dhabi's index gained 1.1 percent, closing week at 2,551 points.
Egypt's AGX30 index, which measures the performance of the market's 30 most active stocks, shed 0.3 percent on weekly basis, closing at 6,029 points.
The GulfBase GCC Index increased 0.68 percent to 3,643.91 points. The value of GCC traded shares dropped by 14.18 percent to $4.18 billion and volume jumped by 21.22 percent to 2.72 billion of shares.
