21/05/2011
‘Speculative trading will continue to dominate Arab stock markets’
The Tadawul All-Share Index (TASI) shed 0.5 percent on weekly basis, closing at 6,686.14 points
Arab stock markets, except the Egyptian bourse, lost ground last week as investors sought clues to the second quarter earnings and other market moving factors, financial analysts said Friday.
Saudi shares were volatile last week, mainly due to the lack of fresh incentives and profit-taking tactics, analysts said.
The Tadawul All-Share Index (TASI) shed 0.5 percent on weekly basis, closing at 6,686.14 points.
Analysts attributed the thin trading to liquidity crunch and the absence of fresh moving factors.
”The Saudi market witnessed weak trading last week, which is a normal situation at this juncture because investors prefer to stay on the sidelines pending data about the half-year results,” Jeddah-based Saudi analyst Mazen Sofi said.
He expected the activity at the Saudi stock market to pick up in July after the release of the second quarter earnings.
Sofi also reported a strong activity in the Saudi real estate market which he expected to give momentum to Saudi stocks.
Meanwhile, head of the Saudi Capital Market Authority (CMA), Abdul Rahman Al-Tuwaijri, announced last week that the Saudi financial authorities were mulling the permission of foreigners to trade Saudi stocks directly instead of the indirect method currently in force.
He also disclosed that the CMA planned to adopt fresh regulatory measures that would seek to punish traders who violate the market’s rules.
