Arab stocks volatile on oil prices, second quarter results

Amman - Arab stock markets closed a mixed week as investors monitored the movement of crude prices, performance of global markets and the second quarter results of listed firms expected to start coming out early in July, financial analysts said Friday. They contended that Arab bourses were still coming under the 'illogical and psychological pressures' of world markets where speculation also appeared to play havoc with oil prices, a key mover of Arab stock markets. 'We don't have real reasons for the retreat of most Arab stock markets this week,' Nizar Taher, chief of brokerage at the Jordan Ahli Bank, told the German Press Agency dpa. 'Regional markets are coming under illogical and psychological pressures from global markets, where fluctuations do take place in response to economic indicators trying to seek clues out of the recession,' he said. Taher and other analysts expected Middle East markets to keep a close eye in the coming few weeks on crude prices and the second quarter results. Saudi stocks surged at the outset of the week on Saturday, but faltered later in the week in response to declines on the Wall Street and fluctuating oil prices. The Tadawul All Share Index (TASI) of the Saudi stock exchange gained 0.8 per cent this week, closing again below the psychological barrier of 6,000 points, at 5,990.30 points. TASI is currently 24.7 per cent higher than the year's start, according to the weekly report of the Riyadh-based Bakheet Investment Group (BIG). The report expected the petrochemical and banking sectors and the corporate results for the second quarter to be the key movers of the Saudi market in the coming few weeks. Jordanian shares lost fresh ground this week due to excessive profit-taking moves and the absence of foreign buying, Taher said. The all-share price index of the Amman Stock Exchange shed 2.78 per cent this week, closing at 2,829 points, according to the ASE weekly report. Kuwait's KSE all-share price index gained 0.4 per cent, to close at 8,312 points from 8,277 points last week. The United Arab Emirates stock exchanges of Dubai and Abu Dhabi plunged on Thursday due to strong profit-taking operations that followed weeks of gains, analysts said. The benchmark prices of Dubai and Abu Dhabi declined 4 per cent and 2.4 per cent this week to close respectively at 2,014 points and 2,798 points resp. Egypt's AGX30 index, measuring the performance of the market's 30 most active stocks, shed 0.5 per cent this week, closing at 6,163 points.