They also attributed the improvement in the performance of regional bourses to expectations the Arab markets could rally after a long holiday marking the pilgrimage season and Eid Al-Adha festivities.
”I believe regional markets will come under positive impact from the European move that seeks to come to grips with the thorny Greek debt issue,” Wajdi Makhamreh, CEO of the Amman-based Noor Investments, told Arab News.
”However, this is not the end of the story as global and Arab markets are still skeptical over the effectiveness of the European blueprint,” he said.
Makhamreh and other analysts expected Arab stock exchanges to be the scene for “hectic speculative trade” in the coming weeks in the absence of clear European solutions to the euro zone debt ordeal and doubts being cast on the world’s economic recovery.
Saudi stocks extended gains last week ahead of Eid Al-Adha holiday as investors appeared upbeat over the success of the European debt package and positive predictions about the yearly earnings of blue chips, particularly the Saudi Basic Industries Corp. (SABIC), analysts said.
The Tadawul All Share Index (TASI) of the Arab world’s largest bourse gained 1.1 percent on weekly basis, led by the petrochemical and banking sectors, to close at 6,215.67 points.
The Saudi benchmark gained 1.83 percent during October, mainly due to hopes pinned on the European deal.
”Investors still consider this closing area risk-free from which they can move either direction,” Saudi analyst Mohammad Anqari said.
He expected speculative trading to dominate the Saudi market after the holiday. “Speculation is the main moving factor for markets at this juncture, given the current state of the world economy,” he said.
Anqari attributed the gains scored by the banking sector last week to the expanding role of banks due to the Saudi government’s huge public spending and the expected growth of the Saudi economy.
Kuwait’s KSE all-share index fell 0.4 percent last week, closing at 5,880 points.
On monthly basis, the Kuwaiti index gained 1.48 percent in October, finding support from the third quarter earnings of Kuwaiti banks and the real estate sector, according to the monthly report of the Global Investment House.
In the UAE, the benchmark of the Dubai stock exchange inched higher last week, closing at 1,384 points, compared with last week’s close at 1,380 points.
Abu Dhabi’s index gained 0.4 percent, closing week at 2,482 points.
Qatar’s all-share index gained 1.1 percent on weekly basis, closing at 8,631 points while Bahrain’s benchmark closed at 1,155 points in the green, gaining 0.4 percent.
Jordanian stocks kept up their rally last week, finding support from positive remarks by the new prime minister, Awn Khasawneh, a former international jury, analysts said.
The all-share index of the Amman Stock Exchange (ASE), gained 1 percent last week, closing at 2,011 points.
Egyptian stocks extended gains last week, reflecting optimism over the general elections due to take place on November 28, analysts said.
Egypt’s AGX 30 index, which measures the performance of the market’s 30 most active stocks, rose 0.8 percent on weekly basis, closing at 4,372 points.
On monthly basis, the Egyptian benchmark climbed 7.5 percent in October due to the improving political climate in the country.
