15/01/2011 00:00 AST
Arab stock markets reflected mixed performance last week as investors evaluated annual results of listed firms, financial analysts said Friday.
They also expected regional markets to keep a close eye on the surging oil prices that steadied this week above 90 dollars a barrel as well as signals coming out from the world’s major economies about the stumbling world recovery.
“I believe annual earnings will be the crucial factor in deciding the direction of Arab markets in the coming couple of weeks,” an Amman-based portfolio manager told Arab News.
“Traders apparently resorted to profit taking tactics last week to make benefit from last week’s rally to avoid incurring losses if the upward trend aborts for one reason or another,” he said.
“However, we believe that oil prices above 90 dollars a barrel will continue to represent a spurring factor for regional markets,” he added.
Saudi stocks continue their upward trend last week deriving momentum from steady crude prices and expectations of good annual results mainly for the petrochemical sector.
The Tadawul All Share Index (TASI) of the Arab world’s largest bourse gained 0.3 per cent on weekly basis, closing at 6,717.18 points.
The liquidity for the week came in at SR18.74 billion as compared to SR16.49 billion for the past week.
On a week-to-week basis, the sector activity was mostly positive with 12 out of 15 sectors closing with gains ranging from 0.21 percent by the Energy & Utilities sector to 4.11 percent by the Industrial Investment sector. On the other hand the losing sectors for the week ranged from -0.30 percent by the Building & Construction sector to -0.75 by the Banks & Financial Services sector, the Financial Transaction House said in its weekly market commentary.
“The results published so far have sent positive signals to the market about the performance of the petrochemical, retail and cement sectors,” Saudi analyst Abdul Hamid Omari said.
TASI apparently also came under pressure from the denial of reports that foreigners would be allowed to trade directly at the Saudi stock market.
“This issue is not under discussion at least in the short term,” Chairman of the Saudi Capital Market Authority Abdul Rahman Tuwajri said.
Jordanian shares extended gains last week, buoyed by blue chips particularly the Arab Potash Co. and the Jordan Phosphate Mines Co., analysts said.
The all-share price index of the Amman Stock Exchange rose 0.65 per cent last week, to close at 2,469 points, according to the ASE weekly report.
The Kuwaiti stock exchange was the scene last week for speculative trading and profit taking moves that pushed down prices.
The KSE all-share index shed 0.56 per cent on weekly basis, coming under pressure mainly from the banking sector and closing at 6,936 points.
Investors seemed to have shifted to small camps and Islamic stocks with blue chips receding to the back seat, Kuwaiti analyst Maitham al-Shakhs said.
“However, an optimistic mood is dominating the market as investors await the release of balance sheets of listed firms,” he added.
The United Arab Emirates shares led the region’s losing stocks last week with the downward pressure coming mainly from the real estate and industrial sectors.
The benchmarks of the Dubai and Abu Dhabi stock exchanges shed 2.62 per cent and 0.53 per cent to close respectively at 1,625 points 2,737 points.
Egypt’s AGX 30 index, measuring the performance of the market’s 30 most active stocks, declined 0.6 per cent due to foreign selling pressures, closing week at 7,156 points, analysts said.
The GulfBase GCC Index dropped slightly last week to close at 4,203.90 points. The value of GCC traded stocks surged 15.82 percent to $6.90 billion and volume rose by 22.03 percent to 3.27 billion of shares.
Arab News
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