Amman - Cautious optimism is expected to dominate Arab stock
markets in the coming week as investors monitor the midyear results
particularly of blue chip firms, analysts said Friday.
'I believe a mood of cautious optimism will be ruling at regional
markets next week with traders' attention focused on the performance
of listed firms, particularly leading companies, during the first
half of the year,' Nizar Taher, deputy chief of brokerage at the
Jordan Ahli Bank, told Deutsche Presse-Agentur dpa.
'In addition to the midyear results, the volume of liquidity will
be the second moving factor at Arab bourses,' he said.
Taher pointed out that the Gulf bourses enjoyed a high degree of
liquidity due to the huge surplus petrodollars accumulated by Saudi
Arabia, Kuwait and the rest of Gulf Cooperation Council member
countries.
'But apparently the level of activity at Gulf bourses is decided
by the degree of confidence investors attach to trading in stocks,'
he said.
Saudi shares dived to record lows at the beginning of this week,
but recovered later, reflecting a cautious approach ahead of the
publication of semi-annual results.
The Tadawul All Share Index (TASI) of the Arab world's largest
bourse hit its lowest point since February 2005, but recovered later
to close at 7,168.70 points that represents a 2.2-per-cent increase
over last week's close at 7,011.16 points.
TASI is currently 9.6 per cent lower than the year's start,
according to the weekly report of the Riyadh-based Bakheet Financial
Advisors (BFA).
The fluctuation 'reflects how investors are cautious while they
await the midyear corporate financial results for listed companies,'
the report said.
'In addition, more investors are keeping away from the market' due
to concerns that the results of the first six months could be
disappointing, it added.
The BFA expected trades to be 'vigilant' awaiting the results of
blue chip firms, which will decide the direction of the market in the
next weeks.
Jordanian shares were steady this week, despite a 0.47-per-cent
loss in the all-share price index of the Amman Stock Exchange on
Thursday due to the forcible closing of positions at the end of the
weak, Taher said.
The ASE benchmark price closed this week marginally higher at
5,775 points from 5,762 points last week, according to the market's
weekly report.
'Speculation is currently the market's key moving factor pending
the half-year results, particularly of leading companies,' Taher
said.
Kuwait's KSE all-share price index jumped to a new record high of
12,207 points this week, winning 1.15 per cent from last week when
the benchmark price closed at 12,068 points.
The Global Investment House attributed the vigorous performance of
Kuwaiti shares to the expectations of good midyear results of Kuwaiti
blue chip firms.
The unified all-share price index of the United Arab Emirates
stock exchanges of Dubai and Abu Dhabi gained 1.8 per cent this week,
closing at 4,600 points up from last week's close at 4,520 points.
Egypt's Case 30 index, measuring the performance of the most
active 30 firms, hit an all time high 8,167.7 points this week,
buoyed by the performance of heavyweight firms, analysts said
© 2007 dpa - Deutsche Presse-Agentur 
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