JEDDAH: Gulf stock markets were volatile this week as investors came under pressure from the euro zone sovereign debt crisis and predictions of second quarter earnings, financial analysts said Friday. The Greek parliament's approval of an austerity plan, global market gains and rising oil prices would reflect positively on regional bourses particularly in the Gulf region, according to analysts. Saudi and Qatari stocks were the only bright spots in the Middle East this week, while the rest of Arab stock markets lost further ground. Saudi shares received momentum from the sectors of petrochemicals, industrial investment, construction and retail trade, analysts said. The Tadawul All Share Index (TASI) of the Arab world's largest stock exchange gained 1.96 per cent on weekly basis, closing at 6,576 points. This week's gains of 3.35 percent by the petrochemical sector sends a 'positive' message to the market and signals the benchmark crossing of the 6,600-point level, Riyadh-based Saudi analyst Turki Fadaak said. He attributed the week's gains by the petrochemical sector to leaks that the petrochemical firms, particularly the Saudi Basic Industries Corp. (SABIC), would unveil a tangible rise in their profits for the first half of the year. Fadaak, director of consultancy at Al-Bilad Investments, also predicted that the Greek parliament's approval of the austerity plan would have a positive impact on the Saudi market. Kuwaiti stocks closed in the red this week due to profit-taking moves and uncertainty of the political situation in the country, analysts said. Kuwait's KSE all-share index shed 0.83 per cent on weekly basis, to close at 6,212 points. The United Arab Emirates stock exchanges of Dubai and Abu Dhabi also fell 1.34 percent and 0.46 percent to close respectively at 1,517 points and 2,704 points. Qatar's benchmark gained 1.79 percent this week, closing at 8,361 points while Bahrain's all-share index declined 1.41 percent, closing at 1,320 points. US stocks ended a rocky second quarter on a positive note, purportedly because Greece appeared set to avoid defaulting on its debts and throwing the eurozone into chaos. Then again, all that could change today, given how sharply traders have reacted - some say overreacted - to each new piece of economic news. With the pieces not fitting together into a clear picture of the economy's prospects, traders' hopes and fears have been battling it out day by day. "The market is somewhat schizophrenic," said David Kelly, chief market strategist for JPMorgan Funds in New York. "It is simultaneously worried about current economic conditions and hopeful about future economic activity." Saudi Gazette/agencies __
