They expected the surging oil prices to boost regional stocks in the medium and long terms through the growing income surpluses due to accrue to Arab oil producers particularly in the Gulf region.
The Saudi and Kuwaiti stock exchanges led the gainers, while the UAE shares suffered due to declining quarterly profits of the real estate sector.
”I believe investors in the region are in a wait-and-see mood pending the release of all first quarter earnings and the outcome of current political events in the Arab world,” Wajdi Makhamreh, CEO of the Amman-based Noor Investments brokerage, told Arab News.
He said businessmen were moving their investments to “safe havens” in the region, particularly Dubai and other Gulf markets.
”However, due to the persisting political worries, Arab oil producers may decide to send their surplus petrodollars to safe havens outside the region, particularly the US and Europe,” Makhamreh said.
Saudi shares rallied last week, buoyed mainly by the petrochemical sector which posted a 51.5 percent increase in the first quarter profits.
The Tadawul All Share Index (TASI) of the Arab world’s largest bourse, gained 2.3 percent on weekly basis, closing at 6,724.26 points.
Jordanian stocks were volatile last week, due to the absence of incentives and the persisting liquidity crunch, Makhamreh said.
The all-share index of the Amman Stock Exchange shed 0.8 percent last week, to close at 2,198 points, according to the ASE weekly report.
Kuwaiti stocks rebounded last week, propelled by the first quarter earnings of the banking sector.
The KSE all-share index went up by 1.24 percent, to close week at 6,522 points.
”We expect the positive quarterly results to boost the market in the coming period, barring any unforeseen major developments,” said the weekly report of the Kuwaiti Wodooh consultancy house.
The UAE shares lost ground last week due to a profit taking move that was mainly sparked by the retreating profits of the Emaar Properties, analysts said.
The benchmarks of the Dubai and Abu Dhabi stock exchanges shed 2.8 percent and 0.6 percent, to close week respectively at 1,634 points and 2,695 points.
Egypt’s AGX 30 index, which measures the performance of the market’s 30 most active stocks, edged higher closing at 5,004 points compared with 1,996 points last week.
