Amman - Arab stock markets plummeted across the board this
week as investors came under 'psychological' pressure from bad
performance on global markets and pessimistic predictions of second
quarter profits, financial analysts said Friday.
'I believe that Arab investors have come again to closely monitor
the situation at world markets,' Wajdi Makhamreh, chief operating
officer at the Amman-based Sanabel International Holding, told German
Press Agency dpa.
'We think regional markets plummeted this week mainly due to the
psychological impact of what is going on at world bourses,' he said.
Makhamreh also blamed the bad performance of Arab stock markets
over the past two weeks on fluctuating oil prices and expectations
that the second quarter results of listed firms could be
disappointing due to the world recession.
He also cited the financial difficulties facing the Saudi al-
Qussaibi and Saad groups as one of the reasons behind this week's
retreat.
Saudi shares dived this week amid heavy selling pressures due to
deteriorating US and European market indices and fluctuating oil
prices.
The Tadawul All Share Index (TASI) of the Arab world's largest
stock exchange declined 6.4 per cent this week, closing at 5,609.02
points. It was the Saudi market's worst weekly performance since
January.
TASI is currently 16.8 per cent higher than the year's start,
according to the weekly report of the Riyadh-based Bakheet Investment
Group (BIG).
The report expected volatility to continue at the Saudi market
until the first week of July when businesses start to release their
quarterly balance sheets.
Jordanian shares also plummeted this week, led by the Arab Bank
amid reports that the bank was one of the key debtors of al-Qussaibi
group.
'The Amman Stock Exchange (ASE) was the scene for panic selling
that culminated on Thursday,' Makhamreh said.
The ASE all-share price index plunged 3.99 per cent this week,
closing at 2,829 points, according to the market's weekly report.
Kuwait's KSE all-share price index shed 1.7 per cent this week, to
close at 8,140 points.
The benchmark prices of the United Arab Emirates stock exchanges
of Dubai and Abu Dhabi plunged 7.7 per cent and 6.1 per cent, closing
respectively at 1,859 points and 2,628 points.
Egypt's AGX30 index, measuring the performance of the market's 30
most active stocks, dived 11.1 per cent this week, closing at 5,479
points.
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