JEDDAH: Gulf stock markets closed week higher with investors upbeat over rising oil prices and gains scored by global bourses, financial analysts said Friday. They expected the regional markets to extend gains in the coming couple of weeks as investors eye annual results, barring any negative developments on the world scene. The regional markets will benefit from surging crude prices which touched a 26-month high of more than $90 per barrel, earlier this week, traders said. The regional market would also benefit from Wall Street gains, emerging signs of sustained world recovery and easing euro zone problems, they said. In New York, US stocks closed higher Friday as the US trade deficit fell to its lowest level in nine months. The Dow Jones industrial average rose 40, or 0.4 percent, to 11,410. The S& P 500 rose 7, or 0.6 percent, to 1,240. The Nasdaq composite index rose 21, or 0.8 percent, to 2,638. New York Stock Exchange trading volume came to 975 million shares. The euro in late day trade was at $1.3227, down from 1.3239 late Thursday. The dollar was meanwhile trading at 83.92 yen, up from 83.70. Saudi stocks led gainers this week amid strong demand to build positions ahead of the new year. The Tadawul All Share Index (TASI) of the Saudi stock exchange gained 1.77 percent on weekly basis, closing at 6,457.18 points, finding support mainly from the petrochemical sector. "I believe the market will rally further deriving momentum from the robust Saudi economy and the government's huge spending on projects which benefits almost all sectors in the country," Riyadh-based Saudi analyst Mohammad Anqari said. He believed that Saudi stocks would find support from rising oil prices and the nearing release of annual results of listed firms. "I believe Saudi businesses enjoy the highest profitability in the region, factor that is set to give a boost to the market in the new year." "The Saudi banking sector suffered losses this week mainly due to allocations to cover toxic debts, but Anqari said that Saudi banks 'only lacked transparency and swift data, because they also stand to gain from the government's spending on projects," he added. Kuwait's KSE all-share index edged higher closing week at 6,821 points, compared with last week's close at 6,818 points. UAE stocks scored modest gains this week, led by the real estate sector. The benchmark of the Dubai stock exchange gained 0.4 percent, closing at 1,693 points, while the Abu Dhabi all-share index went up 0.6 percent, to close at 2,762 points. Hong Kong edged down 0.04 percent, Tokyo fell 0.72 percent and Seoul 0.14 percent.
