Gulf stock markets logged mixed performance this week amid rising oil prices and investors' worries over third quarter earnings. However, analysts said Middle East markets will benefit from rising oil prices as growing liquidity would lead to more investment opportunities inside and outside the region. The regional markets would remain psychologically connected with global markets, which have a potential to react immediately to whatever economic indicators come out of the developed world and the major economies. Saudi stocks kept up their upward trend this week, deriving strength from third quarter results of blue chips, particularly the Saudi Arabian Basic Industries Corp. (SABIC). SABIC reported a 103 percent increase in its third quarter profits relative to the second quarter of 2009, mainly due to rising prices of petrochemical products on world markets. The Tadawul All Share Index (TASI) of the Arab world's largest bourse gained 1 per cent this week, closing at 6,515.81 points. TASI is currently 35.7 percent higher than the year's start, according to the weekly report of the Riyadh-based Bakheet Investment Group (BIG). “TASI closed above the 6,500-point barrier, reflecting optimism on the part of investors” that the market will continue its upward trend, the report said. The BIG expected investors to adjust their portfolio holdings on the basis of profits announced by listed firms and to build new positions in their search for fresh investment opportunities. Kuwait's KSE all-share index extended losses this week slipping by 1.3 per cent and closing at 7,608 points due to doubts about the profits declared by commercial banks in the third quarter, an analyst said. The benchmarks of the UAE stock exchanges of Dubai and Abu Dhabi shed 2.5 per cent and 4 per cent respectively due to selling pressures and weak third quarter results particularly by real estate firms. The indexes of the two markets closed week respectively at 2,244 points and 3,113 points. On Thursday, the Gulf markets that were opened retreated, but Bahrain. Abu Dhabi's main index posted a 1.2 percent decline to 3,120 points, despite minor gains in some bank stocks, including First Gulf Bank, which reported a 9.4 percent rise in Q3 profit on Wednesday. “There were at least some positive announcements from financial companies coming out of Abu Dhabi,” Jaouni said. Abu Dhabi Commercial Bank weighed heavily on the index, falling 3.2 percent. Dubai's benchmark fell 0.6 percent to 2,244 points after a late rally helped it recover from an intra-day low of 2,206. “Our markets are seeing more volatility, with Dubai up 3 percent one day and then down the next and this volatility has increased as more quarterly results are announced,” said Mohammed Yasin, Shuaa Securities chief executive. “The overall trend is sideways,” he added. Emaar Properties was the only stock to gain in Dubai, up 0.2 percent. After market close, the real estate company said third-quarter net profit rose 53 percent. “Emaar is now using a completed project method for accounting, which is having a positive effect on its statement and we should probably see that in the fourth quarter too,” said Robert McKinnon, managing director at Al Mal Capital. Kuwait measure retreated 0.6 percent to 7,608 points. Qatar benchmark fell 1.2 percent to 7,285 points. Oman index eased 0.3 percent to 6,609 points. However, Bahrain index climbed 0.5 percent to 1,558 points. The Saudi market is closed on Thursdays.
