Arab bourses buoyed by oil prices, see gains from Obama's speech

Amman - Arab stock markets ended week steady on rising oil prices and signs of 'shaky recovery' in the world's leading economies, financial analysts said Friday. They contended that regional markets stood to gain in the long run from US President Barack Obama's speech to the Muslim world from Cairo on Thursday. 'Though Obama's speech has been of political nature, I believe it will have a positive impact on regional markets at least in the long term, particularly if it succeeds to set the stage for the resumption of peace talks and business partnerships,' Wajdi Makhamreh, Chief Operating Officer at Sanabel International Holding told the German Press Agency dpa. Makhamreh attributed the steady performance of Arab stocks over the past few weeks to the 'shaky recovery of the US and other leading economies'. 'However, it is still a psychological impact that has nothing to do with fundamental aspects. It may turn out to be of short-lived nature,' he said. 'We have to wait for the results of the second quarter to realize the direction of events and the true performance of listed firms,' he added. Saudi stocks rebounded this week, led by the petrochemical sector particularly the Saudi Arabian Basic Industries Corp. (SABIC) and Saudi Kayan, which gained 11 per cent and 17 per cent respectively. The support also came from the banking sector due to leaks about rising profits of banks in the second quarter of the year, according to the weekly report of the Riyadh-based Bakheet Investment Group (BIG). The Tadawul All Share Index (TASI) of the Arab world's largest bourse climbed 4.5 per cent this week, crossing the 6,000-point psychological barrier and closing at 6,048.87 points. TASI is currently 25.9 per cent higher than the year's start, the BIG report said. 'With the strong improvement in oil prices and the signs of recovery in the global economy, we expect the Saudi market to continue its upward trend in the coming weeks,' it added. Jordanian shares also closed higher led by blue chips mainly the Arab Bank, the Arab Potash Co. and the Jordan Phosphates Mines Co. The all-share price index of the Amman Stock Exchange gained 4.21 per cent this week, closing at 2,955 points, according to the ASE weekly report. Kuwait's KSE all-share price index was up 4.4 per cent, closing at 8,370 points. United Arab Emirates stocks extended gains this week amid reports of the entry of new funds to the market and improving real estate prices. The benchmarks of the UAE stock exchanges of Dubai and Abu Dhabi climbed 13 per cent and 5.4 per cent this week, to close respectively at 2,026 points and 2,803 points. Egypt's AGX30 index, measuring the performance of he market's 30 most active stocks, jumped by 10.2 per cent this week, closing at 6,241 points. The advent of foreign liquidity was cited as main reason of the gains.