Arab markets ended the week with mixed performances, but financial analysts said Friday they expected regional markets to be “indirectly affected” by A(H1N1) flu. “We believe that Arab stock markets will be indirectly affected by the flu, particularly if swift solutions are not found for the disease,” Wajdi Makhamreh, chief operating officer at the Amman-based Sanabel International Holding, said. “Regional markets have affiliations with countries where swine flu has taken a toll and any developments there will inevitably have an impact on the Arab region,” he said. The Tadawul All Share Index (TASI) of the Arab world's largest stock exchange climbed 7.8 percent this week, closing at 5,625.51 points. TASI is currently 17.1 percent higher than at the start of the year, according to the weekly report of the Riyadh-based Bakheet Investment Group (BIG). Saudi shares were buoyed by the Saudi Arabian Basic Industries Corp (SABIC), which gained 16 percent this week following heavy losses last week when the conglomerate announced unprecedented losses for the first quarter of the year. “SABIC's gains this week reflect investors' optimism over the improvement of the company's performance in the coming months, given stable oil prices,” the BIG said. However, the group warned that speculative trading could have “a negative impact on the whole market.” “Therefore, we advise investors to conduct trading on the basis of the financial results of listed firms rather than rumors,” BIG said. Makhamreh also said that the performance of Arab bourses was “to some extent a reflection of what was going on in major economies.” He added “Arab investors are still influenced by steps taken by the United States and European countries to address the downturn.” “Markets are still dominated by speculative trading with investors preferring not to commit themselves to long-term positions,” he said. Saudi shares ignored the flu fears this week and rebounded strongly as stocks received momentum from the banking and petrochemical sectors. Jordanian shares were volatile this week and Makhamreh said that a profit-taking move and first-quarter results of some firms, which came in below expectations, pushed prices down. The ASE all-share index shed 2.03 percent this week, closing at 2,737 points, according to the market's weekly report. Kuwait's KSE all-share price index gained 1.9 percent this week to close at 7,557 points. The benchmark price of the United Arab Emirates stock exchange of Dubai fell 2.9 percent this week, closing at 1,606 points. Egypt's AGX30 price index, which measures the performance of the market's 30 most active stocks, gained 2.05 percent on Thursday, closing at 5,191 points.
