AMMAN: Arab stock markets closed last week mixed as investors turned their attention to the third quarter results which are due to be released next week, financial analysts said Friday.
However, they expected regional stocks to pick up in the coming weeks due to rising oil prices and encouraging US and Chinese figures which could indicate steady world recovery.
"I believe Arab stocks stand to gain in the coming couple of weeks from third quarter results as well as from climbing crude prices and better-than-expected figures in the United States and China," an Amman-based portfolio manager told Arab News.
Oil prices rose above $80 a barrel on Friday to a seven-week high, propelled by encouraging US and Chinese economic data that fuelled expectations of world recovery and subsequent rising demand for crude, he said.
Saudi shares were volatile last week due to what analysts described as profit taking moves ahead of the publication of third quarter results.
The Tadawul All Share Index (TASI) of the Arab world's largest stock exchange shed 0.66 percent last week, crashing downward the 6,400-point level and closing at 6,392.39 points.
"I believe the level of 6,500 points has become a psychological barrier due to profit taking practices," Jeddah-based Saudi analyst Khalid Harethi said.
"I think expectations relating to the third quarter results are the major reason for the retreat as investors prefer to keep their liquidity outside the market at this juncture pending the release of third quarter earnings to decide their portfolios," he added.
Jordanian shares fluctuated within a narrow range last week as the month of September drew to a close, analysts said.
The all-share index of the Amman Stock Exchange lost 0.12 percent on weekly basis, to close at 2,306 points, according to the ASE weekly report.
Kuwaiti shares were the main gainer in the region last week, making benefit mainly from reports that Etisalat of the United Arab Emirates was offering to buy a 46 percent stake in Kuwait's telecom Zain group in a deal amounting to $11 billion.
Kuwait's KSE all-share index climbed 2.12 percent last week, closing at a four-month high of 6,985 points.
The United Arab Emirates stocks were mixed last week, with the benchmark of the Dubai stock exchange losing 0.34 percent on weekly basis, and closing at 1,684 points. The Abu Dhabi all-share index went up 1.28 percent, closing at 2,673 points.
The Dubai index led Gulf bourses in the Gulf region in the third quarter, climbing 15.18 percent, mainly due to reports that the Dubai World had reached agreement with the vast majority of its creditors for rescheduling about $25 billion of debts, analysts said.
The quarterly gains of the stock exchanges of Abu Dhabi, Kuwait and Saudi Arabia were put at 6.42 percent, 6.47 percent and 4.9 percent respectively.
Egypt's AGX30 index, measuring the performance of the market's 30 most active stocks, shed 1.3 percent this week, to close at 6,634 points.
By ABDUL JALIL MUSTAFA
© Arab News 2010
