Arab stock markets rallied this week, buoyed by figures supporting recovery prophecies of the US and other major economies, improving performance of global bourses and rising oil prices, financial analysts said Friday, according to dpa. However, analysts pointed out that they still predicted sluggish trading at regional markets during the fasting month of Ramadan and a persistent "psychological correlation" between world and Middle East markets, particularly in the oil-rich Gulf region. "I believe Arab bourses will be volatile during the fasting month when many investors traditionally prefer to stay on the sidelines awaiting new driving factors," Wajdi Makhamreh, Chief Operating Officer at the Amman-based Sanabel International Holding, told the German Press Agency dpa. "We think that speculation and hit-and-run tactics will be the dominant behaviour at regional markets during the coming weeks as investors will be reluctant to commit themselves to long-term strategies due to the ambiguity that still surrounds the world economy," he added. Makhamreh expected Arab stock markets to continue to be a reflection of crude price movements as well as the performance of global bourses. Saudi shares rebounded this week, led by the banking and petrochemical sectors, particularly the Saudi Arabian Basic Industries Corp. (SABIC), which gained 6.4 per cent on weekly basis. The Tadawul All Share Index (TASI) of the Arab world's largest stock exchange gained 2.5 per cent this week, closing at 5,762.75 points. TASI is currently 20 per cent higher than the year's start, according to the weekly report of the Riyadh-based Bakheet Investment Group (BIG). "The Saudi stock exchange benefited from the strong gains scored last week by Wall Street and other global markets as well as the positive figures published in the United States about the consumers' confidence and home prices," the report said. The BIG expected Saudi shares to preserve their "positive performance" next week, given reports about sustained world recovery and stable oil prices. Jordanian shares continued to suffer this week as a result of lack of liquidity and shrinking demand, Makhamreh said. The all-share price index of the Amman Stock Exchange gained 1.19 per cent this week, to close at 2,492 points, according to the ASE weekly report. Kuwait's KSE all-share price index was up 1.5 per cent this week, closing at 7,964 points. The United Arab Emirates stock exchange of Dubai gained 4 per cent this week, closing at 1,887 points, while the Abu Dhabi bourse edged lower closing at 2,856 points compared with last week's close at 2,867 points. Egypt's AGX30 index, measuring performance of the market's 30 most active stocks, climbed 6 per cent this week to close at 6,704 points, mainly due to intensive buying by foreign investors, analysts said.
