They contended that the adamantly surging oil prices and the strong economies of the Arab states in the Gulf area would provide a catalyst for regional stocks in the coming period.
”I believe the rising crude prices will be a key moving factor for Arab stocks in the coming weeks,” Nizar Taher, chief of brokerage at the Jordan Ahli Bank, told Arab News.
”I think the huge surplus petrodollars due to be collected by Arab oil producing countries will seek investment outlets, including stock markets,” he said.
He said the marathon spending plans by member countries of the Gulf Cooperation Council (GCC), particularly that of Saudi Arabia, would have a ”positive impact” on regional stocks for years to come.
Taher pointed out that the impact of Middle East political turmoil on stock exchanges was receding due to the ”stability” of the hereditary regimes in the Gulf region.
Saudi shares lost some ground last week as traders got the impression that prices could go down after the release of first quarter results.
The Tadawul All Share Index (TASI) of the Arab world’s largest stock exchange shed 0.45 percent on weekly basis, closing at 6,574.92 points.
The decline came despite a declaration by Saudi Arabian Basic Industries Corp. (SABIC) that it had posted a 42 percent increase in its profits for the first quarter to about $2 billion.
”I believe the retreat of the market after the release of SABIC’s quarterly profits reflects uncertainty due to rumors circulated among investors that prices could go down after the declaration of quarterly earnings,” Saudi analyst Mohammad Anqari said.
He expected Saudi stocks to ”move sideways” this week reflecting traditional volatility after the revelation of quarterly earnings.
Anqari said that the growth of earnings of Saudi banks in the first quarter of 2011 indicated that the country’s banking sector enjoyed ”stability” that qualified it to expand credit potential after it managed to get rid of toxic loans over the past two years of the global financial crisis.
Kuwaiti stocks closed in the green last week, led by the banking and investment sectors.
Kuwait’s KSE all-share index gained 0.84 percent last week, closing at 6,442 points.
The benchmarks of the UAE stock exchanges of Dubai and Abu Dhabi climbed by 3.66 percent and 1.2 percent last week to close respectively at 1,681 points and 2,711 points.
Qatar’s index shed 1.5 percent on weekly basis, closing at 8,647 points, while Bahrain’s benchmark declined 0.8 percent to close week at 1,400 points.
Jordanian shares were volatile last week due to a persisting ”lack of confidence” and liquidity shortage, resulting mainly from shrinking foreign buying, Taher said.
The all-share index of the Amman Stock Exchange gained 0.5 percent on weekly basis, closing at 2,216 points, according to the ASE weekly report.
Egypt’s AGX 30 index, measuring the performance of the market’s 30 most active stocks, plummeted 5.7 percent last week, to close at 4,996 points, due to political uncertainty that sparked intensive foreign selling, analysts said.
