Business News
Arab bourses upbeat over semi-annual results, oil prices
Jun 20, 2008, 16:06 GMT
Amman- Arab stock markets are expected to make fresh gains on what financial analysts described on Friday as good corporate results for the first half of the year and surging oil prices.
'I think regional stocks stand to gain from half-year results, which are expected to go out early in July, and from soaring crude prices,' Wajdi Makhamreh, Chief Operating Officer at the Amman-based Sanabel International Holding, told Deutsche Presse-Agentur dpa.
'We believe that Arab markets will also benefit from any improvement in the geopolitical situation and from positive moves in the US economy away from recession,' he said.
Stock exchanges in Saudi Arabia, Jordan and Kuwait extended gains this week in an apparent response to leaks of better-than-expected results for the first six months.
The Tadawul All Shares Index (TASI) of the Saudi bourse gained 0.9 per cent this week, closing at 9,778.48 points from 9,688.45 points last week.
TASI is currently 11.4 per cent lower than at the start of the year, according to the weekly report of the Riyadh-based Bakheet Investment Group(BIG).
This week's gains by the Arab world's largest stock exchange was fuelled mainly by the petrochemical sector, the BIG report said.
Investors reacted to Petro-Rabigh's recently announcement of its first contract to export Mono-Ethylene Glycol, it added.
The soaring prices of petrochemical products also effected investors' decisions, the report said.
The BIG expected the Saudi market 'to continue its gradual rebound reflecting the positive outlook for the second quarter results which will represent the driving engine for the market in the coming weeks'.
Jordanian shares also kept up their vigorous drive propelled by the strong gains of blue chip firms, mainly the Arab Potash Co., the Jordan Phosphate Mines Co. and the Jordan Petroleum Refinery.
The all-share price index of the Amman Stock Exchange climbed 4.64 per cent this week to close at 5,044 points compared with last week's close at 4,820 points, according to the ASE weekly report.
Kuwait's KSE all-share price index gained 1.6 per cent this week closing at a record high of 15,552 points from 15,306 points last week.
The benchmark of the United Arab Emirates stock exchanges of Dubai and Abu Dhabi shed 1.4 per cent this week, closing at 6,154 points from 6,238 points last week.
Egypt's CASE 30 index, measuring the performance of the market's 30 most active stocks, declined 3.6 per cent due to profit-taking moves, to close at 10,306 points from 10,697 points.
