Gulf stock markets seesawed last week as investors kept a closed watch on the second quarter results, developments in the euro zone and oil prices. The Saudi Stock Exchange fluctuated primarily as a result of volatile oil prices on world markets. The benchmark Tadawul All Share Index (TASI) closed week marginally lower at 6,343.47 points, compared with last week's close at 6,346.44 points. The fluctuating petrochemical sector, led by Saudi Basic Industries Corp. (SABIC) due to unstable oil prices dampened the Saudi market performance. “The fluctuating SABIC prices could reflect unhealthy connotations for the market,” Saudi analyst Mohammad Anqari told the Dubai-based CNBC business television. He also attributed the sluggish performance of the Saudi market this week mainly to the absence of fresh liquidity and ambiguity surrounding the world economy. “I believe the Saudi market is tied to the world economy. If prospects improve then we expect the index to crash the 6,350-point area upward,” he said. Kuwaiti shares scored gains this week for the first time in five weeks, led by blue chips particularly the Zain mobile operator. Kuwait's KSE All-Share Index closed up 0.64 percent at 6,625 points despite losses incurred by the banking sector, analysts said. Market bellwether and mobile telecommunications operator Zain retreated 1.7 percent. “Volumes continue to be weak ... lots of day traders, smart money and local investors are sitting on the sidelines,” said one Kuwait-based trader. “Investors don't want to commit capital into the market, and the market doesn't have enough liquidity to support the smart money - the long term investor looking for good opportunities.” The United Arab Emirates shares also departed the red area for the first time in five weeks mainly due to optimistic news about the repayment of the Dubai World debts. The benchmarks of the Dubai and Abu Dhabi stock exchanges were up 2.58 percent and 1.51 percent, to close respectively at 1,538 points and 2,553 points. Real estate stocks weighed on Dubai's index which slipped 0.8 percent to 1,539 points, led by Emaar Properties and Arabtec which both fell 2.1 percent. “We saw some profit-taking coming in the last couple of hours, tracking the markets in Europe,” said Matthew Wakeman, managing director for cash and equity linked trading at EFG Hermes. “Volume was quite light. After the selling spree in Europe, nobody wants to load up today ahead of the weekend and have something happen in Europe which would lead to a nightmare Sunday.” The Omani measure edged 0.1 percent higher to 6,180 points, while Bahrain's stock index edged 0.2 percent lower to 1,411 points.
