Arab stock markets rebounded this week after the year-end holiday, but financial analysts said Friday that the rally could be short-lived when annual results of listed firms start to come out according to DPA. "I believe the rebound was in response to improving performance on world markets and the jump in oil prices that accompanied the Israeli attack on the Gaza Strip," an Amman-based portfolio manager told Deutsche Presse-Agentur dpa. "However, we think that markets will assume caution in the coming weeks as investors expect corporate profits to retreat due to the world financial crisis and the subsequent recession," he said. Saudi shares led the regional recovery with the Tadawul All Share Index (TASI) gaining 10.8 per cent this week and closing at 5,322.22 points compared with the market's close on December 31, 2008 at 4,802.99 points. The rebound at the Arab world's largest bourse was led by the petrochemical sector, particularly the Saudi Basic Industries Corp. (SABIC,) and the banking sector, analysts said. Jordanian shares were volatile this week as investors monitored clues to the annual results of listed firms, analysts said. The all-share price index of the Amman Stock Exchange gained 1.60 per cent this week, to close on Thursday at 2,803 points, according to the ASE weekly report. Kuwait's KSE all-share price index shed 0.8 per cent on Thursday, closing week at 7,372 points. The benchmark of the United Arab Emirates stock exchanges of Dubai and Abu Dhabi climbed 5.4 per cent this week, closing at 2,690 points. Egypt's CASE 30 index, measuring the performance of the market's 30 most active shares, gained 3.2 per cent this week, closing at 4,634 points.
