JEDDAH: Gulf stock markets rallied in first week of the new year, deriving momentum from expectations of annual earnings, robust oil prices and indications of sustained recovery in the world's major economies, financial analysts said Friday. Barring any setbacks on the global scene, they expected regional shares to gain fresh ground in the coming weeks with the release of balance sheets and reports that speculative investors were readying themselves to make benefit from the new positive environment. Saudi shares gained fresh ground since the beginning of 2011, with support coming mainly from the petrochemical, investment, transport and retail sectors. The Tadawul All Share Index (TASI) of the Arab world's largest bourse gained 1.14 percent on weekly basis despite a profit-taking move that dominated the market before the weekend. As a result, the benchmark price failed to close above the 6,700-point psychological barrier, ending week at 6,696.26 points. "I believe the upward trend will continue as investors await the annual earnings and dividend distributions which are due to start coming out next week," Saudi analyst Tareq Madi said. He expected investment funds to be involved in a spate of speculation in the coming weeks with the Saudi Arabian Basic Industries Corp. (SABIC) leading the market, ahead of the declaration of corporate earnings. Profit taking moves also limited gains scored this week by Kuwaiti stocks which came under pressures from the persisting wrangling between the government and the opposition. Kuwaiti shares were also negatively affected by a reported delay in finalizing a multi-billion-dollar deal, whereby the United Arab Emirates telecommunication firm, Etisalat, planned to buy a 46 percent stake in Kuwait's Zain mobile group, analysts said. Kuwait's KSE all-share index gained 0.29 percent on weekly basis, closing at 6,976 points. The benchmarks of the UAE stock exchanges of Dubai and Abu Dhabi also rallied this week, gaining 2.34 percent and 1.19 percent respectively, and closing at 1,669 points and 2,752 points. Dubai's shares rose Thursday, snapping a three-day loss, as US reports signaled a broadening global economic recovery. Oil traded above $90 a barrel. The DFM General Index climbed 0.6 percent to 1,657.92, bringing the gain for the week to 1.7 percent. Elsewhere, Qatar's QE Index dropped 0.3 percent and Abu Dhabi's ADX General Index retreated 0.2 percent. Kuwait's gauge lost 0.6 percent, while Bahrain's measure advanced 0.4 percent. Saudi Arabia's market is closed for the weekend. World oil prices dipped slightly Thursday, after a late rebound Wednesday that followed upbeat US labor market data and an unexpectedly big fall in American crude inventories. Brent North Sea crude for delivery in February slid 21 cents to $95.27 a barrel in morning London deals. New York's main contract, light sweet crude for February fell 35 cents to 89.95 per barrel. Emirates NBD PJSC, the United Arab Emirates biggest bank, jumped 2.4 percent. Emaar Properties PJSC, builder of the world's tallest skyscraper, rose the most in a week. "Stronger oil and gains in international markets" are helping push local stocks up, said Tarek Lotfy, head of equities at Dubai-based Arqaam Capital Ltd. The MSCI Asia Pacific Index rose 0.8 percent today and the STOXX Europe 600 Index increased 0.6 percent. Emirates NBD increased to AED2.95, the highest intraday level since Jan. 2. Emaar rose as much as 1.1 percent, the most since Dec. 30, and last traded up 0.6 percent at AED3.52.
