16/07/2011
Arab stocks suffer from Greek and Italian debt debacle
TASI shed 1.6 percent closing at 6,508.80 points
A trader is pictured at her desk in front of screens at the Frankfurt stock exchange. (Reuters)
Arab stock markets lost ground last week as investors came under negative impact from global recovery worries, Europe’s debt ordeal and the persistent political turmoil in the Middle East, financial analysts said.
The summer vacations and the approaching holy month of Ramdan, tentatively set to start on August 1, have also contributed to the slump of regional bourses, they added.
Saudi shares were volatile last week as investors evaluated the second quarter earnings declared so far.
The Tadawul All Share Index (TASI) of the Arab world’s largest stock exchange shed 1.6 percent on weekly basis to close at 6,508.80 points.
”I believe the market is in a wait-and-see mood where investors watch the release of the half-year results of all listed firms,” Saudi analyst Mohammad Anqari said.
Other analysts said that the Saudi market awaited the publications of the second quarter profits of blue chips, particularly the Saudi Basic Industries Corp. (SABIC).
Anqari singled out the Saudi banking sector as one of the key attracting areas that were expected to lure both local and foreign investors in the coming months due to its success in getting rid of allocations for toxic loans.
He conceded that Saudi stocks might come under fresh pressure from global markets and world recovery problems, but believed the high oil prices and the huge Saudi public spending would push the benchmark to higher levels.
Kuwait’s KSE all-share index lost 0.7 percent last week, to close at 6,169 points.
The United Arab Emirates stocks reflected mixed performance last week.
Qatar’s all-share index also closed week 0.22 percent in the red, at 8,484 points.
Jordanian shares continued their bad performance last week due to lack of incentives and the persistent liquidity crunch.
The all-share index of the Amman Stock Exchange (ASE) fell 0.57 percent, closing week at 2,090 points.
