Gulf stocks scored gains this week as investors appeared upbeat over annual earnings and the improving prospects of a global economic recovery, financial analysts said Friday. However, they warned that regional equity shares were still under pressure from Arab Spring turmoil and tension between Iran and western powers. Saudi stocks rallied this week, propelled by the banking, petrochemical and telecom sectors. The Tadawul All Share Index (TASI) jumped 2.9 percent on a weekly basis, closing at 6,663.48 points, the highest in six months. "I believe the Saudi benchmark is benefiting from a wave of optimism that has come to dominate the market over the past month," said Abdullah Baeshen, CEO of the TeamOne consulting firm. He attributed the upbeat sentiments in the Saudi market to a number of factors, foremost "the annual results and the recovering global economy." Baeshen also cited the strong Saudi economy and increased public spending, which generated liquidity. Kuwaiti stocks extended gains this week ahead of Thursday's election in which the Islamic-led opposition made significant gains. Kuwait's KSE all-share index rose 0.7 percent this week, to close at 5,856 points. Analysts expected Kuwaiti investors to take a wait-and-see approach next week to know how the market would respond to the outcome of the poll. United Arab Emirates shares were bullish for a second week, buoyed by the performance of the banking sector and generous dividend distributions, analysts said. The benchmarks of the Dubai and Abu Dhabi stock exchanges climbed 2.1 percent and 3.6 percent on weekly basis, closing respectively at 1,436 points and 2,477 points. Qatar's all-share index gained 2.3 per cent, closing at 8,636 points, while Bahrain's benchmark closed almost unchanged at 1,137 points. The total amount of traded shares in the Saudi Stock Exchange last January hit SR155.40 billion, an increase of 31.25 percent from SR118.39 billion in the previous month. The percentage share of Saudi nationals from the market trades was 93.1 percent for selling at SR144.66 billion and 89.9 percent for buying at SR139.70 billion. The percentage share of Saudi companies from the market trades was 2.1 percent for selling at SR3.24 billion and 4.9 percent for buying at SR7.69 billion. The percentage share of investment funds from the market trades was 1.5 percent for selling at SR2.31 billion and 1.7 percent for buying at SR2.59 billion. The percentage share of GCC nationals from the market trades was 0.9 percent for selling at SR1.35 billion and 0.8 percent for buying at SR1.31 billion.
