However, they warned that regional equity shares were still under pressures from the Arab Spring turmoil and the possible repercussions of the showdown between Iran and Western powers.
“I believe stocks, particularly in Gulf markets, are making benefit from dividend distributions, sustainable oil prices and the strong macroeconomic indicators,” Wajdi Makhamreh, CEO of the Amman-based Noor Investments, told Arab News.
“However, scoring further gains in the coming weeks will depend on the developments of the conflict between Iran and Western powers over threats to close the strategic Hormuz Straights and Tehran nuclear file,” he said.
Makhamreh pointed out that regional stock markets were feeling relief over serious efforts by the European decision makers to handle the euro zone debt crisis.
Saudi stocks rallied last week, propelled by the banking, petrochemical and telecom sectors.
The Tadawul All-Share Index (TASI) jumped 2.9 percent on weekly basis, closing at 6,663.48 points, the highest in six months.
“I believe the Saudi benchmark is making benefit from a wave of optimism that has come to dominate the market over the past month,” said Abdullah Baeshen, CEO of the TeamOne consulting firm.
He attributed the upbeat sentiments in the Saudi market to a number of factors, foremost “the annual results and the recovering global economy”.
Baeshen also cited the strong Saudi economy and the huge public spending which helped to spur liquidity that sought investment outlets in the stock market.
Kuwaiti stocks extended gains last week. Kuwait’s KSE all-share index rose 0.7 percent last week, to close at 5,856 points.
Analysts expected Kuwaiti investors to take a wait-and-see approach this week to know how the market would respond to the outcome of the early polls that were called by the ruler, Sheikh Sabah Al-Ahmad Al-Sabah, to get rid of a standoff with the opposition.
United Arab Emirates shares were bullish for the second week in a row, buoyed by the performance of the banking sector and generous dividend distributions, analysts said.
The benchmarks of the Dubai and Abu Dhabi stock exchanges climbed 2.1 percent and 3.6 percent on weekly basis, closing respectively at 1,436 points and 2,477 points.
Qatar’s all-share index gained 2.3 percent, closing week at 8,636 points, while Bahrain’s benchmark closed almost unchanged at 1,137 points.
The all-share index of the Amman Stock Exchange gained 0.4 cent last week, closing at 1,945 points.
A strong rally by Egyptian shares last week received a setback on Thursday due to the bloody events that followed Wednesday’s soccer game at Port Said.
Egypt’s AGX30 index, which measures the performance of the market’s 30 most active stocks, gained 3.42 percent on weekly basis led by blue chips.
The benchmark closed week at 4,584 points after losing 215 points on Thursday due to a sell-off by panicking dealers, analysts said.
