Arab stocks, which recorded strong gains in 2007, are expected to retain their bullish tone in 2008, thanks to the soaring oil prices and profits achieved in the past year, particularly by blue chip firms, financial analysts said Friday, according to dpa. "I think there is genuine reasons to believe that regional stocks will score further gains in 2008, given the huge surplus petrodollars due to accrue to Arab countries as a result of the adamantly rising crude prices," Wajdi Makhamreh, CEO of the Amman-based al-Sanabel International brokerage firm told Deutsche Presse-Agentur dpa. "I think that the strong gains scored by regional bourses in 2007 indicate that investors are restoring confidence in regional stock markets especially in the wake of the real estate credit crisis in the United States," he said. With the exception of the Saudi market, Arab bourses scored fresh gains in the first three days of the new year. Saudi shares suffered a sharp correction in the last two trading days after a series of consecutive gains, a development that reflected "nervousness" on the part of investors ahead of the publication of annual results, the Riyadh-based Bakheet Investment Group (BIG) said in its weekly report. The Tadawul All Share Index (TASI) of the Arab world's largest stock exchange shed 4.6 per cent this week in a profit-taking move, closing at 10,892.64 points from last week's close at 11,415.30 points. The BIG expected the market "to go through relative calmness with an eye open on the year end results" of listed firms in the coming weeks. Jordanian shares started 2008 with strong performance led by blue chip firms, particularly the Arab Bank, the Jordan Petroleum Refinery, the Jordan Phosphates Mines and the Arab Potash Co. The all-share price index of the Amman Stock Exchange gained 4.68 per cent this week, closing at 7,862.15 points, according to the ASE weekly report. Kuwait's KSE all-share price index gained 93 points on Thursday closing week at 12,601.6 points. The all-share price index of the United Arab Emirates stock exchanges of Dubai and Abu Dhabi extended gains on Thursday, closing week at 6,168.65 points. Egypt's CASE30 index, measuring performance of the market's most active 30 firms, gained 0.3 per cent on Thursday closing week at 10,727.8 points.
