Arab stocks rebound on half-year results, higher oil prices

Jul 8, 2011, 14:49 GMT

Amman - Arab stock markets scored modest gains this week as investors appeared upbeat over second quarter earnings and surging oil prices, financial analysts said Friday.

However, analysts expected regional markets to falter during summer holidays and the advent of the Muslim fasting month of Ramadan, tentatively set to start on August 1.

'I think Arab stocks, particularly in the Gulf region, derived momentum this week from semi-annual results and rising crude prices,' Wajdi Makhamreh, CEO of the Amman-based Noor Investments brokerage, told German Press Agency dpa.

'Regional bourses are also expected to come under further negative impact from Arab uprisings, the eurozone debt crisis and the summer vacations,' he said.

The worst scenarios of the fallout of Arab revolts on regional markets is finding expression in the reported flight of foreign capital from the Arab region to seek more save havens in the world's emerging markets, Makhamreh said.

'Even Arab governments with surpluses are now reportedly seeking to invest their money outside the Arab region,' he added without further elaboration.

Saudi stocks were volatile this week as investors awaited the release of the second quarter earnings, particularly those of the petrochemical and banking sectors, analysts said.

The Tadawul All Share Index (TASI) of the Arab world's largest stock exchange gained 0.55 per cent on weekly basis, closing at 6,612.46 points.

Saudi analysts expected prices to plateau in the coming couple of weeks, as liquidity usually tapers off during the summer season and during the fasting month.

However, the Saudi market stands to gain in the medium and long terms from the surging oil prices and the government's huge spending, Riyadh-based analyst Mohammad Anqari said.

Jordanian shares were volatile this week in the light of the continuing lack of confidence and the persistent liquidity crunch, Makhamreh said.

The all-share index of the Amman Stock Exchange gained 0.5 per cent this week, closing at 2,103 points, according to the ASE weekly report.

Kuwait's KSE all-share index edged higher closing week at 6,213 points compared with last week's close at 6,212 points.

The United Arab Emirates shares rebounded this week, led by the banking and real estate sectors.

The benchmarks of the Dubai and Abu Dhabi stock exchanges gained 2.7 per cent and 0.39 per cent, to close respectively at 1,558 points and 2,715 points.

Qatar's all-share index gained 1.69 per cent on weekly basis, closing at 8,502 points.

Egyptian shares were stable throughout the week due to strong foreign buying despite news of a huge demonstration on Friday for pressing public demands to speed up punishment of symbols of the former regime of President Hosny Mubarak.

Egypt's AGX 30 index, which measures the performance of the market's 30 most active stocks, shed 0.2 per cent on weekly basis, closing at 5,360 points.

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