JEDDAH: Arab stock markets rebounded this week as investors became more comfortable with heightened geopolitical risk and stock volatility eased, analysts and brokers said. The comment of Saudi Finance Minister Ibrahim Assaf that the Kingdom overcame the obstacles was more than reassuring. “When people are less worried, more long-term investors will come in,” said Robert Pramberger, acting head of asset management at Doha's The First Investor. Shakeel Sarwar, head of asset management at Securities & Investment Co (SICO) in Bahrain, noted that “the fundamental factors that underpin growth prospects are still intact, given the high oil prices and the ambitious economic and social programs put forth by the regional governments,” adding that “markets are likely to be up for the year.” “When there is government intervention, it's usually concentrated on banks and other blue-chips,” said Naser Al-Nafisi, general manager for Al Joman Center for Economic Consultancy in Kuwait. Saudi firms were trading at attractive levels and so offered a good buying opportunity for state funds, Nafisi added. Saudi shares led this week's rebound, led by the petrochemical and banking sectors. The Tadawul All Share Index (TASI) surged 14.75 percent this week, offsetting most of its losses last week that reached 15 percent. The Saudi benchmark closed week at 6,108 points. “Undoubtedly, investors have been reassured by the finance minister's remarks that also helped to restore confidence to the market,” said Mohammad Emran, member of the Saudi Economic Society. Analysts said though that further unrest is crucial. “The forthcoming stage will be crucial due to the split in the market between those who are optimistic and others who bet on declining prices,” Emran added. Kuwaiti's KSE all-share index gained 2.2 percent this week, closing at 6,286 points. The benchmarks of Dubai and Abu Dhabi climbed 7.2 percent and 3.4 percent to close week respectively at 1.450 points and 2,617 points. Qatar's all-share price index surged 9.88 percent this week, closing at 8,229 points. Bahrain's benchmark gained 2.4 per cent on weekly basis, closing at 1,410 points. The all-share index of the Amman Stock Exchange gained 0.2 percent this week, closing at 2.219 points.
