Gulf stocks could rebound next week after a pickup on world markets Thursday in response to strong Chinese export data, receding European debt fears as reflected on improving euro exchange rates and the subsequent rise of crude prices, analysts said on Friday. The regional markets were volatile due to persisting European sovereign debt crisis worries and unstable oil prices. Regional stocks have come under psychological pressure from global markets and the euro zone debt ordeal, though there is no correlation between what is happening in Europe and the region. Regional shares also weakened on liquidity crunch and sell-off by foreign investors to cover their losses elsewhere. Saudi shares scored strong gains at the end of the week, finding support from oil prices, which rose at times above $75 a barrel, after falling below $65 over the past couple of weeks. The Tadawul All Share Index (TASI) of the Arab world's largest stock exchange gained 1.8 per cent this week, closing at 6,110.98 points. The rise was led by the petrochemical sector, particularly the Saudi Basic Industries Corp (SABIC), analysts said. Kuwaiti stocks lost fresh ground this week in thin trading and receding confidence on the part of investors. Kuwait's KSE all-share index shed 1.4 percent this week, to close at 6,640 points. “The liquidity crunch is the major factor that concerns traders at this time,” said Mohammad Ashkanani, a Kuwaiti analysts. The UAE shares also suffered amidst reports of continued selling by foreign investors. The benchmarks of the Dubai and Abu Dhabi stock exchanges shed 1.1 percent and 1.8 percent to close respectively at 1,514 points and 2,526 points. However, US oil prices fell more than 2 percent on Friday. Friday's slide snapped a three-day string of higher closes, but for the week oil prices still managed a 3.17 percent rise thanks to the mid-week winning streak. US crude for July fell $1.70, or 2.25 percent, to settle at $73.78 a barrel, trading from $73.26 to $75.64. ICE Brent fell 94 cents to settle at $74.35, but ended up 4.6 percent on the week.
