They
expected speculative trading to dominate regional markets in the coming couple
of weeks in the absence of fresh moving factors.
”I
believe the failure of the European policymakers to come to grips with the
sovereign debt crisis will continue to have its bite on Middle East markets,”
Nizar Taher, chief of brokerage at the Jordan Ahli Bank, told Arab News.
”I
think the fallout of the euro zone debt problem on Arab bourses has been
acceptable so far, but the danger lies in predictions that the crisis could
spread to new uncontrollable dimensions,” he said.
Taher
and other analysts expected any escalation in the rhetoric war between Iran and
the Western powers over Tehran’s nuclear program could push up oil prices
sharply and have negative repercussions on regional stock markets.
Saudi
stocks edged higher last week with the Tadawul All-Share Index (TASI) closing
at 6,219.95 points, compared with the previous close at 6,215.79 points.
The
value of Saudi traded shares reached SR25 billion last week.
Saudi
analysts expected the benchmark to move sideways in the coming couple of weeks
as investors focus attention on steps being taken by the European policy makers
to address the aggravating debt debacle.
The
Saudi market will also be awaiting the release of the public budget which is
expected to provide lavish spending that directly affects a number of sectors,
particularly the construction industry and banking, Riyadh-based analyst Rashed
Fouzan said.
Earlier
this year, Custodian of the Two Holy Mosques King Abdullah unveiled a plan for
the world’s largest oil exporter to spend $134 billion in the coming five
years.
Fouzan
expected speculative trading to dominate the Saudi market in the coming few
weeks, saying ”the annual earnings of listed firms will be crucial in lifting
the benchmark” toward the 7,000 points.
Kuwait’s
KSE all-share index closed week unchanged at 5,880 points. Analysts believed
Kuwaiti stocks would come under pressure this week as a result of the renewed
political turmoil in the country.
The
benchmarks of the United Arab Emirates stock exchanges of Dubai and Abu Dhabi
closed 0.4 percent and 0.3 percent in the red last week, respectively at 1,379
points and 2,474 points.
Qatar’s
index gained 1.3 percent on weekly basis, closing at 8,744 points, while
Bahrain’s benchmark ended week 1.1 per cent up at 1,168 points.
Jordanian
stocks rebounded last week, buoyed by the third quarter earnings of blue chips,
particularly the Arab Potash Company and the Jordan Phosphates Mines Company,
Taher said.
The
all-share index of the Amman Stock Exchange (ASE) gained 0.8 percent on weekly
basis, closing at 2,027 points.
Taher
expected the unrest in neighboring Syria would reflect negatively on Jordanian
stocks in the short term.
Egyptian
stocks emerged as the main loser in the Middle East last week due to political
tension arising from calls for a huge rally on Friday to protest a
controversial document proposed by the government.
Egypt’s
AGX 30 index, which measures the performance of the market’s 30 most active
stocks, plunged 4.4 percent on weekly basis, to close at 4,178 points.
The
approaching general elections set for Nov. 28 and concerns that Islamists may
emerge triumphant are also putting additional pressure on Egyptian stocks,
analysts said.
