They expected regional markets to extend gains when trading returns to normal in the middle of next week, but cautioned that the psychological correlation would persist between Arab stock exchanges and global markets for some time to come.
"I believe regional markets stand to gain from a positive sentiment that prevails at Arab stock exchanges in the wake of the fasting month of Ramadan that witnessed a sluggish performance," an Amman-based portfolio manager said.
"We also expect investors to respond positively to upbeat economic data in the United States, particularly the retreating jobless claims, which refer to sustainable world recovery," he said.
Saudi shares surged before Eid Al-Fitr holiday, led by the petrochemical and banking sectors, amid reports of fresh liquidity entering the market.
The Tadawul All Share Index (TASI) of the Arab world's largest stock exchange climbed 2.39 per cent last week, to crash the 6,300-point psychological barrier and close at 6,306.33 points.
"We cannot ignore the impact of the global markets on Saudi stocks, but we have also to reckon with local positive factors, foremost the strength of the Saudi economy and expected results of firms in the third quarter," Saudi analyst Yassin Jafri told the Dubai-based CNBC Arabiyah economic network.
He pointed out that the market would also be affected by the fluctuations of oil prices, which usually reflect the prophecies of world economic recovery and the expected demand for crude.
Jordanian shares also moved to the green area last week, due to improving confidence and volume of liquidity, analysts said.
The all-share index of the Amman Stock Exchange gained 1.33 per cent last week, closing at 2,924 points, according to the ASE weekly report.
Kuwait's KSE all-share index gained 0.8 percent last week, led by the banking and insurance sectors, to close at 6,757 points.
The Dubai stock exchange was the main regional gainer last week amid reports that the Dubai World conglomerate had reached agreement with 99 percent of its creditors for the rescheduling of $24.9 billion of its debts, analysts said.
Dubai's benchmark climbed 6.3 percent on weekly basis, to close at 1,592 points.
Abu Dhabi's all-share index also went up 1.49 per cent last week, closing at 2,532 points.
Egypt's AGX30 index, measuring the performance of the market's 30 most active stocks, shed 0.41 per cent to close week at 6,499 points, due to retreating buying orders, analysts said.
