Arab bourses close week higher on rising oil prices, better demand

Mar 5, 2010, 13:04 GMT

Amman - Arab stock markets rebounded this week, helped by rising oil prices, better performance of global markets and improving liquidity, financial analysts said Friday.

They predicted that regional markets stood to score more gains in the coming weeks among expectations of rising demand on oil and better results for the first quarter of 2010.

'I believe crude prices and leaks about the first quarter results will be the main catalyst for Middle East markets in the coming weeks,' an Amman-based portfolio manager told the German Press Agency dpa.

'However, we cannot exclude the psychological impact on regional markets of developments on global bourses, new reports about world recovery and geopolitical factors mainly those pertaining to the row over the Iranian nuclear file and the aftermath of the Iraqi general elections,' he said.

Saudi shares gained fresh ground this week, propelled by the petrochemical, cement and telecommunication sectors as well as dividend distributions.

The Tadawul All Share Index (TASI) of the Arab world's largest stock exchange gained 0.2 per cent this week, closing at 6,478.58 points.

Jordanian stocks rebounded this week, led by blue chips, amid reports of improving liquidity and rising demand by foreign funds, analysts said.

The all-share index of the Amman Stock Exchange (ASE) gained 1.16 per cent this week, to close at 2,466 points, according to the market's weekly report.

Kuwaiti shares extended gains this week against the backdrop of the Zain telecom group's sale of its African operations to India's Bharti for about 10.7 billion dollars, analysts said.

The KSE all-share index went up 0.8 per cent this week, closing at 7,435 points. The market found support from higher demand on the Kuwait National Bank and the Gulf Bank.

However, the weekly report of the Kuwait Global Investment House predicted that the Kuwaiti exchange could witness profit taking moves next week, particularly in the light of the failure of some leading companies to declare their 2009 results so far.

The United Arab Emirates shares turned to the green this week after weeks of plunges amid reports of improving liquidity and higher foreign demand.

The benchmark of Dubai stock exchange edged higher, closing at 1,585 points from 1,582 points last week.

Abu Dhabi's index gained 1 per cent this week, closing at 2,727 points.

Egypt's AGX30 index, measuring the performance of the market's 30 most active stocks, also gained 1 per cent, closing week at 6,783 points.