28/05/2011
Arab markets under pressure from turmoil
TASI gains 0.56 percent on weekly basis, closing at 6,723.65 points
AMMAN: Arab bourses reflected mixed performance last week as regional markets came under fresh pressure from geopolitical turmoil, renewed eurozone sovereign debt concerns and leaks of second quarter results, financial analysts said.
Saudi and Egyptian shares closed week in the green, while the rest of Arab stock markets suffered varying losses.
Analysts believed that the robust oil prices and the huge public spending of the oil-exporting states in the GCC would spur regional stock markets in the medium and long terms.
”I believe political turmoil still have an impact on regional markets though in a lesser extent,” Nizar Taher, head of brokerage at the Jordan Ahli Bank, told Arab News.
He expected oil prices over $100 a barrel would lead to larger surplus petrodollars accruing to Arab oil exporters this year.
”The GCC income surpluses will certainly seek investment outlets particularly in regional markets of countries with stable governments,” Taher said.
Saudi stocks kept their upward thrust last week, led by the petrochemical and cement sectors.
The Tadawul All Share Index (TASI) of the Saudi stock exchange gained 0.56 percent on weekly basis, closing at 6,723.65 points.
”I think the stable demand for oil and petrochemicals lays down the ground for fresh gains in the coming weeks,” Saudi analyst Mohmmad Anqari said.
Other analysts said they expected TASI to climb toward the 7,000-point psychological level in the coming weeks in the run-up for the release of the semi-annual results early in July.
