JEDDAH: Gulf stock markets faltered this week, coming under negative pressure from the Irish debt worries and the artillery fire incident on the Korean peninsula, financial analysts said Friday. The decline was led by Saudi shares, reflecting concerns that the military developments between the two Korean states could affect Saudi Arabia's oil exports to the region, they added. Saudi stocks plunged this week on losses incurred by the petrochemical and banking sectors, mainly the Saudi Arabian Basic Industries Corp. (SABIC). The Tadawul All Share Index (TASI) of the Arab world's largest stock exchanges shed 2.36 percent on weekly basis, closing at 6,291.30 points. Kuwait's KSE all-share index lost 0.32 percent this week, led by the investment and real estate sectors, analysts said. The Kuwaiti benchmark closed the week at 6,928 points, which represents a gain of 22 percent since the beginning of the year, according to the weekly report of the Kuwait Financial Center. “I believe both the euro debt crisis and the military developments in the Korean peninsula have negatively affected stock markets in the Gulf region, which maintains close ties with world economies,' Wajdi Makhamreh oor Investments brokerage told DPA. “The petrochemical sector appeared as the key loser due to fears that the military duels between North Korea and South Korea could have a prolonged effect on Gulf crude exports to the Far East,” he added. World oil prices fell Friday as the dollar soared against the euro on deepening concern over the eurozone debt crisis. Brent North Sea crude for delivery in January shed 63 cents to $85.41 a barrel in London trade. New York's main contract, light sweet crude for January, fell 40 cents to $83.46. Stocks and the euro fell Friday as investors were unsettled by the seeming inability of European policymakers to get a handle on the debt crisis, which threatened to engulf Portugal – widely considered the weakest eurozone economy after Greece and Ireland. Wall Street lurched from gains to losses in a rollercoaster ride this week, amid concerns about the eurozone, tensions on the Korean peninsula and amid a US holiday. The Dow Jones industrial average fell 95.28, or 0.9 percent, to 11,092. The S&P 500 index was down 8.95, or 0.8 percent, to 1,189.40. The Nasdaq composite index fell 8.56, or 0.3 percent, to 2,534.56. The Dow Jones Industrial Average fell one percent for the week, while the S&P 500 was down 0.7 percent. In Europe, the FTSE 100 index of leading British shares closed down 30.23 points, or 0.5 percent, at 5,668.70 while Germany's DAX fell 30.68 points, or 0.5 percent, to 6,848.98. The CAC-40 in France ended 31.77 points, or 0.8 percent, lower at 3,728.65. The euro was down another 0.9 percent on the day at $1.3228, just above its earlier fresh two-month low of $1.3199 and way down of Monday's recent high of $1.3786. Regional markets would face further pressures in the coming couple of weeks as investors express doubts about the success of the Irish bailout plan. However, oil prices will remain one of the key moving factors for Middle East stock markets. The benchmark of Dubai stock exchange shed 0.2 percent, closing at 1,682 points.
