Arab stock markets plummeted across the board this week in response to losses incurred by the world's major bourses, the Israeli attack on the Gaza Strip and falling oil prices, financial analysts said Friday. They expected regional markets to suffer further in the coming weeks, amid expectations that upcoming releases of 2008 corporate figures might turn out worse that expected. “I believe regional markets will be cautious in the coming couple of weeks as investors monitor the release of annual results,” Wajdi Makhamreh, chief operating officer at Amman-based Sanabel International Holding, said. “Investors expect the 2008 corporate results to come worse than expected due to the global financial turmoil and the subsequent recession,” he said. Makhamreh said that the performance of Middle East stock markets would depend, to a large extent, on “geopolitics and the outcome of the current initiatives that seek to establish a truce at the Gaza Strip.” Another major factor affecting Arab bourses is a stimulus package expected once the new administration of US president-elect Barack Obama is sworn in on Tuesday, he added. Saudi shares suffered throughout the week, pulled down by the petrochemical and banking sectors. The Tadawul All Share Index (TASI) plunged 7.3 percent this week, closing at 4,935.33 points, down from 5,322.22 points last week. On Wednesday, the last trading day of the week, it shed 2.84 percent with all indices registering losses. The benchmark of the United Arab Emirates stock exchanges of Dubai and Abu Dhabi declined 2.4 percent this week, closing at 2,626 points from 2,690 points last week. The Dubai and Abu Dhabi stock indices fell on Thursday as global markets sank, creating more negative sentiments among local investors who are expecting weak earnings in the fourth quarter. The Dubai Financial Market General Index sank for the third straight day, closing down 3.22 percent at 1,643.65. The decline was led by real estate, banks and financials, and telecom stocks. The Abu Dhabi Securities Exchange Index dropped nearly 70 points or 2.84 percent to 2,385.35. “Any bad news adds to the prevailing negative mood,” said Sharif Abdul Khalek, manager, accounts, Beltone Financial. “The slump in US and other markets in Asia and Europe put pressure on the markets here. Nortel filed for bankruptcy in the US. Investors see no sign of stability and no one knows when the recovery will begin. Unfortunately there is more fear in their minds.” Bahrain's benchmark Global Bahrain Index tumbled by 33.5 percent or 71.74 points during the year to close at 142.25 points at the end of last year which is also the lowest the index touched, said a Global Investment House report. Kuwait's KSE all-share price index plunged 4 percent, closing at 7,079 points from 7,372 points last week.
