Gulf stock markets closed mixed this week as investors came under pressure from ambiguity surrounding a deal to bail out debt-ridden Greece, analysts said Friday. Regional stock exchanges retreated across the board over the past couple of days in response to plunges on the world's main stock markets after ratings agency Standard & Poors downgraded Greece's sovereign debt to junk status and cut Portugal's long-term credit score. Analysts expected the regional bourses to remain “psychologically connected” with global markets and indicators about the US and other major economies. A Saudi rally, sparked by first quarter earnings, lost momentum at the end of the week due to plunges of global markets. The Tadawul All Share Index (TASI) of the Arab world's largest stock exchange gained 2 percent on weekly basis, closing at 6,867.97 after recording a 19-month high of 6,949.20 points. “Saudi stocks suffered in the past two days as a result of the plummeting global markets following negative news about Greece's rescue package,” said Bishr Bakhit, chairman of the Bakhit Investment Group (BIG). “The psychological linkage between world markets and the Saudi stock exchange is quit clear. However, the Saudi market is still fairing better than global markets, as the Saudi benchmark price gained 12 percent since the beginning of the year, compared with 3 percent in the Wall Street,” he added. Kuwait's KSE all-share index gained 0.6 per cent this week, to close at 7,299 points, receiving support from the investment sector, analysts said. United Arab Emirates shares were overshadowed this week by concerns over the Dubai World debt rescheduling. Dubai and Abu Dhabi markets shed 0.9 percent and 1.4 per cent to close respectively at 1,740 points and 2,777 points. Analysts believe markets will continue to suffer from fallout of the debt crises of Greece, Portugal and Spain.
