Most Gulf stock markets closed in the red this week mainly due to persistent negative fallout from the euro debt crisis and fears that the world economy could sink into a fresh recession, financial analysts said Friday. However, they expected this week's recovery of global markets on hopes that the European policymakers could make progress in resolving the Greek debt ordeal could reflect positively on Middle East bourses next week. Saudi shares were volatile this week in response to fluctuations on global markets. The Tadawul All Share Index (TASI) of the Arab world's largest stock exchange fell 0.86 per cent on weekly basis, to close at 6,071.53 points, led by the petrochemical, banking and industrial investments sector. Saudi analyst Mohammad Anqari attributed the bad performance of the Saudi market this week mainly to the 'ambiguity' on the world scene due to the failure of the European policymakers to adopt blueprints for stimulating their economies parallel to that declared by the United States last week. "The Americans have dealt positively with the crisis, but the Europeans failed so far to do so and they appeared confused," Anqari said. He pointed out that the global crisis was putting downward pressure on Saudi banks and the petrochemical industry. "Saudi banks are in good position, but they are facing huge demand for credit due to the failure of their clients to obtain loans from Western banks," he said. Anqari expected prices of Saudi petrochemical products to be affected by retreating global demand resulting from recession fears. He expected Saudi stocks to remain in this week's closing area pending fresh news from the United states and Europe 'because investment executives believe it is a risk-free area.' The benchmarks of the United Arab Emirates stock exchanges of Dubai and Abu Dhabi shed 0.87 per cent and 0.88 percent on weekly basis, closing respectively at 1,467 points and 2,576 points.
