Arab stock markets showed variable performance this week mainly due to differing investor responses to published 2009 results of listed firms, particularly blue chips, dpa quoted financial analysts as saying today. Saudi and Egyptian shares were the key beneficiaries from corporate profits and planned dividend distributions, but the United Arab Emirates stocks extended losses, reportedly due to sell-offs by foreign investors, they added. "I believe regional markets, particularly the Dubai and Abu Dhabi stock exchanges, are still coming under pressure from the Dubai World debt issue," Nizar Taher, chief of brokerage at the Jordan Ahli Bank, told German Press Agency dpa. "Besides, Arab bourses are affected by the fluctuating oil prices. The downward trend of crude oil prices had an apparent impact on regional markets this week," he said. Taher and other financial analysts believed that the annual corporate results, particularly of blue chips, would remain the main moving factor for Middle East markets for the coming few weeks. Saudi shares extended gains this week, propelled by profits scored by the banking and petrochemical sectors. The Tadawul All Share Index (TASI) of the Arab world's largest stock exchange gained 1.9 per cent this week, closing at 6,382.04 points. TASI is currently 4.3 per cent higher than the year's start, according to the weekly report of the Riyadh-based Bakheet Investment Group (BIG). The Saudi market drew momentum from "the outstanding performance of the banking sector" following the release of profits achieved by leading banks in the fourth quarter of 2009, the report said. "The Saudi market was also positively affected by the annual results of blue chips, particularly the Saudi Arabia Basic Industries Corp (SABIC), which reported a 133 per cent increase in its profits for the fourth quarter due to rising prices of petrochemical products," it added. BIG expected the Saudi stock exchange to "maintain its positive performance" in the coming weeks, with investors shifting positions to stocks capable of achieving growth. Jordanian shares came under selling pressures this week due to what Taher described as "shrinking liquidity" and profit taking moves. The all-share index of the Amman Stock Exchange shed 1.73 per cent, closing week at 2,553 points, according to the ASE weekly report. Kuwait's KSE all-share index fell 1 per cent this week, closing at 7,062 points, due to the decline of the banking index, analysts said. The Dubai and Abu Dhabi stock exchanges plunged 3.2 per cent and 2.6 per cent, to close week respectively at 1,652 points and 2,637 points. Egypt's AGX30 index, measuring the performance of the market's 30 most active stocks, gained 2.7 per cent, closing the week at 6,864 points.
