Gulf stock markets extended gains this week, mainly propelled by speculation on small caps by investors who seemed to adopt hit-and-run strategies pending breakthroughs in the world's fight against recession, financial investors said Friday. “Regional markets were led this week by speculators who focused on small caps in the search for speedy profits to the exclusion of long-term blue chip commitments,” a portfolio manager said. “I believe Arab (and Gulf) markets will witness fluctuations in the coming weeks pending the publication of first quarter results and the emergence of clues as to the outcome of stimulus plans being adopted by the world's major economies to address the global downturn,” he said. Saudi shares reflected strong performance this week for the fourth week in a row, partly buoyed by the slowly rising oil prices and a strong wave of speculation on small caps, particularly insurance stocks. The Tadawul All Share Index (TASI) of the Arab world's largest stock exchange climbed 6.8 percent this week, closing at 5,039.03 points. TASI is currently 4.9 percent higher than the year's start, according to the weekly report of the Riyadh-based Bakheet Investment Group (BIG). “This week's rally reflects investors' optimism over last month's series of positive factors on the global financial markets and ahead of the announcement of the first quarter results,” the report said. The report predicted that the Saudi stock market could witness “stable performance following a series of rallies, unless global markets deteriorate on Friday.” The benchmark prices of the United Arab Emirates stock exchanges of Dubai and Abu Dhabi gained 1.88 percent and 0.96 per cent, closing at 1,617 points and 2,542 points respectively. Kuwait's KSE all-share index gained 5.1 percent this week, to close at 7,263 points. The Oman index MSI edged 0.05 percent higher to 4,802 points, its fifth successive higher close, as Oman Telecommunications Co (Omantel) jumped 4.7 percent. Omantel's rise offset declines in eight of Muscat's 10 largest companies, with traders selling to invest in a $155m bond issue from Bank Muscat, which opened on Wednesday. “World markets are seeing profit taking after big gains recently and the same is happening in the Gulf,” said Sunil Dhall, vice-president at Gulf Baader Capital Markets in Muscat. “The Japanese yen is getting stronger, which is usually a sign that investors are becoming more cautious.” Bank Muscat shares fell 1.2 percent. __
