16/04/2011 00:00 AST
Arab stock markets reflected mixed performance last week as investors awaited the publication of first quarter results, financial analysts said on Friday.
Bourses in the Gulf region gained fresh ground last week buoyed by a 130-billion-dollar Saudi public spending blueprint and surging crude prices, while markets in Egypt and Jordan retreated apparently coming under negative pressures from political woes, they added.
”I believe regional markets, particularly in the Gulf area, will continue to score gains as a result of the adamantly rising oil prices and the huge Saudi spending package,” an Amman-based portfolio manager told Arab News.
”Current oil prices indicate that larger surplus petrodollars will be accruing for Gulf countries. Such surpluses will seek investment outlets, including stocks,” he said.
Saudi shares extended gains last week, led by petrochemical and construction sectors.
The Tadawul All Share Index (TASI) of the Arab world’s largest stock exchange gained 0.45 percent on weekly basis, closing at 6,604.2 points.
Saudi analyst Khalid Jawher expected the Saudi benchmark to climb toward the psychological barrier of 7,000 points, propelled by expectations of strong first quarter earnings for blue chips, particularly the Saudi Basic Industries Corp. (SABIC).
”The positive aspect of the Saudi stock exchange lies in investors’ focus on strategic shares, particularly the petrochemical sector, which is expected to post strong results,” he said.
”The optimism over the performance of the Saudi market also stems from the positive macroeconomic scene and the marathon spending plan of the government,” he added.
Kuwaiti shares also ended week in the green, led by the banking and investment sectors.
Kuwait’s KSE all-share index gained 0.64 percent on weekly basis, to close at 6,388 points.
The benchmarks of the United Arab Emirates stock exchanges of Dubai and Abu Dhabi climbed by 4.5 percent and 3 percent, to close respectively at 1,622 points and 2,678 points.
Qatar’s index gained 1.29 percent on weekly basis, closing at 8,780 points, led by the industrial and energy sectors.
Bahrain’s all-share index edged higher to close last week at 1,411 points.
The benchmark of the Muscat stock exchange went up by 1.35 percent, closing at 6,394 points
Jordanian shares continued to suffer from lack of confidence and weak foreign demand, analysts said.
The all-share index of the Amman Stock Exchange shed 1.8 percent last week, closing at 2,205 points, according to the ASE weekly report.
Egypt’s AGX 30 index, which measures the performance of the market’s 30 most active shares, declined 2.3 percent last week due to political uncertainty, to close at 5,300 points.
Arab News
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