Barring any setbacks on the global scene, they expected
regional shares to gain fresh ground in the coming weeks with the release of
balance sheets and reports that speculative investors were readying themselves
to make benefit from the new positive environment.
“I believe Arab stocks stand to gain from the surging oil
prices, yearly results and the encouraging economic data coming from the United
States and Europe’s leading economies,” Nizar Taher, chief of brokerage at the
Jordan Ahli Bank, told Arab News.
“The growing Arab surplus petrodollars will spur not only
Gulf bourses but also other Arab stock markets which are poised to attract part
of the new money accruing from higher crude prices,” he said.
Saudi shares gained fresh ground since the beginning of
2011, with support coming mainly from the petrochemical, investment, transport
and retail sectors.
The Tadawul All Share Index (TASI) of the Arab world’s
largest bourse gained 1.14 percent on weekly basis despite a profit taking move
that dominated the market before the weekend.
As a result, the benchmark price failed to close above the
6,700-point psychological barrier, ending week at 6,696.26 points.
The liquidity for the week came
in at SR16.49 billion as compared to SR14.94 billion for the past week.
On a week-to-week basis, the
sector activity was mostly positive with 12 out of 15 sectors closing with
gains ranging from 0.17 percent by the hotel and tourism sector to 2.40 percent
by the multi-investment sector. On the other hand the losing sectors for the
week ranged from -0.15 percent by the transport sector to -1.50 by the media
and publishing sector.
The top gainers for the week were the trade union
Cooperative Insurance Co. with a gain of 15.12 percent to close at SR20.55 and
the Nama chemical Co. with a gain of 08.52 percent to close for the week at
SR12.10. The top losers for the week on the other hand were the Tihama Advt.
& Public Relations Co. with a loss of -12.07 percent to close at SR25.50
and the Gulf General Cooperative Insurance Co. losing -06.80 percent to close
at SR48.00, the Financial Transaction House said in its weekly commentary.
“I believe the upward trend will continue as investors await
the annual earnings and dividend distributions which are due to start coming
out next week,” Saudi analyst Tareq Madi said.
He expected investment funds to be involved in a spate of
speculation in the coming weeks with the Saudi Arabian Basic Industries Corp.
(SABIC) leading the market, ahead of the declaration of corporate earnings.
Jordanian shares were the main beneficiary last week due to
a growing foreign buying to make benefit from exceptionally low prices at the
Amman Stock Exchange (ASE).
The ASE all-share price index gained 3.37 percent last week,
closing at 2,453 points, with support coming mainly from blue chips, according
to the market’s weekly report.
“There is an optimistic sentiment that the market will keep
up its rally amid reports of good annual results, particularly by the banking
sector,” Taher said.
Profit taking moves also limited gains scored last week by
Kuwaiti stocks which came under pressures from the persisting wrangling between
the government and the opposition.
Kuwaiti shares were also negatively affected by a reported
delay in finalizing a multi-billion-dollar deal, whereby the United Arab
Emirates telecommunication firm, Etisalat, planned to buy a 46 percent stake in
Kuwait’s Zain mobile group, analysts said.
Kuwait’s KSE all-share index gained 0.29 percent on weekly
basis, closing at 6,976 points.
The benchmarks of the UAE stock exchanges of Dubai and Abu
Dhabi also rallied last week, gaining 2.34 percent and 1.19 percent
respectively, and closing at 1,669 points and 2,752 points.
Egypt’s AGX 30 index, measuring the performance of the
market’s 30 most active stocks, went up 0.8 percent last week, closing at 7,203
points due to active local and foreign buying, analysts said.
