Gulf stock markets ended the week mixed as investors continued to come under psychological pressure from global markets and indecisive indicators of world recovery. However, the markets were expected to rebound next week in response to gains scored by Wall Street and European bourses on Thursday and Friday following reports of strong earnings by US and European businesses and the record jump in German business sentiment. Regional markets were forecast to retain their psychological linkage with global markets for some time to come. Gulf bourses will react positively in the coming weeks to any improvement in economic indicators in the United States and key European economies, analysts predicted. The rising oil prices to have a positive impact on regional stocks. In New York, investors bought stocks again on the latest reassuring news about the economy. This time, it was about European banks. European regulators, who issued the results of what are called “stress tests” on the banks, on Friday said only a handful would struggle if the continent's economy weakens. That helped send the Dow Jones industrial average rose more than 100 points. The Dow closed up 102.32, or 1 percent, at 10,424.62. The Standard and amp; Poor's 500 index rose 8.99, or 0.8 percent, to 1,102.66, while the Nasdaq composite index rose 23.58, or 1.1 percent, to 2,269.47. Rising stocks outpaced those that fell by a 4 to 1 margin on the New York Stock Exchange, where volume came to 1.15 billion shares. US crude oil prices hit an 11-week high above $79 per barrel on Friday then retreated to close lower, as markets digested the European bank stress test results while taking support from the temporary loss of some Gulf of Mexico oil production ahead of Tropical Storm Bonnie. US crude oil for September delivery fell 32 cents, or 0.4 percent, to settle at $78.98 a barrel, trading from $78.40 to $79.60, the highest front-month crude price since $80.39 was struck May 6. For the week, US front-month crude gained $2.97, or 3.91 percent, after dipping 8 cents to $76.01 last week. London ICE Brent futures fell 37 cents, or 0.48 percent, to settle at $77.45 a barrel. Saudi shares were volatile this week despite better-than-expected semi-annual results announced by the country's top petrochemical conglomerate, the Saudi Basic Industries Corp. (SABIC). According to preliminary reports, the earnings of listed Saudi firms posted a 23.6 percent increase, to $5.3 billion, in the second quarter compared with the same period of 2009. The Tadawul All Share Index of the Arab world's largest stock exchange shed 1.37 percent this week, closing at 6,089.95 points due to what analysts described as profit taking, lack of confidence and keenness to avert further losses consequent on world market fluctuations. “I believe Saudi firms are now back to posting gains after the catastrophic situation that gripped the world economy and the (Middle East) region,” said Bishr Bakhit, CEO of the Riyadh-based Bakhit Investment Group. He expected Saudi stocks to be affected in the coming weeks by oil prices and world developments, including the European sovereign debt problem. Kuwaiti stocks scored gains this week, deriving momentum from bank earnings and official statements about government plans to spur the national economy. Kuwait's KSE all-share index gained 1.07 percent for the week, closing at 6,583 points. Dubai stock exchange inched higher closing at 1,529 points from last week's close at 1,520 points, while Abu Dhabi's index gained 1.1 percent, closing at 2,551 points.
