Gulf stock markets extended gains this week as investors appeared upbeat over the half-year corporate results, rising oil prices and the positive mood that prevailed at Wall Street and other global markets, financial analysts said Friday. With the publication of the second quarter results of most listed firms, they said, the performance of regional bourses would be a reflection of global markets and the movements of crude prices. Saudi shares rallied for the second week in a row mainly in response to half-year results of the banking, petrochemical and telecom sectors as well as to climbing oil prices. The total profits of 91 Saudi companies reached $7.5 billion in the first half of the year, enhancing expectations of a sustained recovery. The Tadawul All Share Index (TASI) of the Arab world's largest stock exchange gained 0.7 per cent this week, closing at 5,670.52 points. TASI is currently 18.1 per cent higher than the year's start, according to the weekly report of the Riyadh-based Bakheet Investment Group (BIG). The BIG expected investors to ‘rearrange their portfolios' in the coming period in accordance with performance of global markets and the movement of oil prices. “I believe the behavior of Arab stock markets in the coming weeks will depend to a large extent on the performance of international bourses, any clues indicating a way out of the global recession and oil prices,” Wajdi Makhamreh, chief operating officer at the Amman-based Sanabel International Holding, said. “Despite the better-than-expected semi-annual results of regional businesses, I think the psychological correlation between regional and world markets will continue to be felt,” he said. Kuwait's KSE all-share price index gained 1.25 percent this week, to close at 7,675 points from 7,580 points last week. The UAE stock exchanges of Dubai and Abu Dhabi were the scene for fluctuations this week as investors appeared hesitant to involve themselves in long-term commitments, analysts said.
