Arab stocks get boost from rising oil prices


28/03/2009 00:00 AST

Arab stock markets advanced across the board last week, receiving momentum from US President Barack Obama’s plans to spur economy, gains scored by global bourses and rising oil prices, financial analysts said yesterday.

However, they warned that the rally could be “short-lived” due to ambiguity surrounding the outcome of blueprints adopted by the world’s leading economic powers to handle the downturn.

“Obama’s plans to use government spending to jumpstart growth and reshape the chaotic financial system have reflected positively on Middle East markets,” Wajdi Makhamreh, chief operating officer at the Amman-based Sanabel International Holding, said.

“Arab bourses have also received a push from rising oil prices, which help to shore up budgets of Gulf countries and provide additional liquidity for regional markets,” he said.

“However, we believe that the impact of such psychological factors could turn out to be short-lived, given the lack of clear vision as to the chances of global efforts giving a hand to the faltering world economy,” he added.

Makhamreh expected regional stocks to be the target of repeated waves of “speculation and profit-taking” in the coming weeks.

Saudi shares scored fresh gains last week for the second week in a row with sectors of petrochemicals, telecommunications and banking leading the rally.

The Tadawul All-Share Index (TASI) climbed 5.52 percent last week, closing at 4,642.99 points.

TASI is currently 3.3 percent lower than the year’s start, according to the weekly report of the Riyadh-based Bakheet Investment Group (BIG).

“The Saudi market was affected by a series of positive news surrounding the US market, particularly the plan disclosed by the US Treasury to buy $1 trillion of sour assets from banks,” the report said.

The BIG expected the Saudi stock market to witness “narrow fluctuations as investors eye the upcoming corporate results for the first quarter, particularly of petrochemical firms and banks.”

Jordanian shares also rallied last week buoyed by news that Iraqi investors were staging a comeback to the Amman Stock Exchange in the wake of visa and residence facilities extended by the government to Iraqi businessmen, Makhamreh said.

The ASE all-share price index gained 2.69 percent last week, closing at 2,701 points, according to the market’s weekly report. Kuwaiti shares also gained ground last week, boosted by the government’s approval of a $5.2-billion facility to help the country’s banks and investment firms which were facing difficulties as a result of the global financial crisis.

Kuwait’s KSE all-share price index rose by 1 percent last week, closing at 6,753 points.

Kuwaiti Minister of Finance Mustafa Shamali said that the stimulus plan was aimed at restoring “stability of the financial system.”

The all-sharer price index of the United Arab Emirates stock exchanges of Dubai and Abu Dhabi gained 4.6 percent to close week at 2,554 points. Egypt’s AGX-30 index, measuring the performance of the market’s 30 most active stocks, climbed 7.1 percent last week, closing at 4,246 points.

Arab News
Market News
2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | News Archive
Most Viewed Companies
Ticker Price Volume
QNBK 141.9 88,465
GFH 0.58
AMLAK 1.11 5,867,712
DU 5.67 2,648,775
STC 74.4 31,867
SABIC 100 251,403
BKMB 0.36 2,845,456
Recent News

S&P Global affirms the financial strength rating of gcAA+ for WALAA
Walaa Cooperative Insurance Company is pleased to announce that on 25/07/2017 the Company has secured gcAA+ long term Gulf Cooperation Council Regional scale financial strength credit rating, The rat

Dollar hits 13-month low after Fed adjusts statement
The dollar fell on Wednesday, touching its lowest level in more than a year against a basket of currencies after the release of the Federal Reserve's policy statement following its July meeting.

Abu Dhabi group to set up $150m Vietnam petchem JV
Abu Dhabi-based Baron Point Petroleum Services Company (Baron Point Petroleum) has reached an agreement with national oil and gas company PetroVietnam Oil Corporation (PV Oil) to set up a joint ventu

Zain Bahrain posts $3.7m net profit; revenues hit $84m
Zain Bahrain, a leading telecommunications provider in Bahrain, today reported that its year-on-year revenues for the first half of 2017 surged 16.4 per cent, from BD31.8 million ($84.1 million) to B

Seef Properties' H1 net profit surges 16pc
Bahrain-based Seef Properties has registered a net profit of BD5.2 million ($13.7 million) for the first half of 2017, up 16 per cent compared to BD4.5 million ($11.8 million) the same period last ye

GulfBase GCC Index
Search By
  • Company Symbol
  • Company Name
  • Mutual Fund Name
  • News Content
Send this page to a friend

Poll

Looking ahead, what change you are more likely to make in investing in your domestic stock market?