Arab stock markets suffered fresh setbacks this week under pressure of worsening performance of listed firms and bad news coming from global markets, financial analysts said Friday, according to dpa. They expected regional markets to remain cautious in the coming weeks pending the emergence of new factors that help to reverse the trend. "I believe markets in the region will be volatile in the coming couple of weeks with investors awaiting the release of more annual results and the official adoption of the stimulus package by the new US administration of President Barack Obama," an Amman-based portfolio manager told Deutsche Presse-Agentur dpa. He expected oil prices, 2008 results and geopolitics to have a major impact on stock prices in the coming weeks. "However, we think that the exceptionally low prices of regional stocks could trigger waves of buying by local and foreign funds if the climate of confidence improves at world markets," he said. Saudi stocks continued their downward trend this week led by the petrochemical and banking sectors. The Tadawul All Share Index (TASI) of the Arab world's largest bourse plummeted 7.7 per cent this week, closing at 4,556.80 points from 4,935.33 points last week. The Riyadh-based Bakheet Investment Group (BIG) attributed the decline to "massive selling operations" that followed the publication of 2008 results of blue chip firms, particularly those of the petrochemical conglomerate the Saudi Basic Industries Corp (SABIC). SABIC suffered a 95-per-cent decline in profits in the fourth quarter relative to the third quarter of 2008 due to falling prices of petrochemical products and a 50-per-cent drop in sales, the BIG said in its weekly report. "Investors have already started to rearrange their positions by minimizing their exposure to stocks that were mostly affected by the financial crisis," the report said. "They hope to achieve high returns in the long run, awaiting the new plan of the new US administration to take its course and have its positive impact on markets," it added. Jordanian shares were volatile this week under pressure of decreasing liquidity and apparent decision by funds to remain on the sidelines awaiting fresh clues, analysts said. The all-share price index of the Amman Stock Exchange shed 3.52 per cent this week, to close at 2,677 points compared with last week's close at 2,775 points, according to the ASE weekly report. Kuwait's KSE all-share price index plunged 8.2 per cent this week, closing at 6,497 points from 7,079 points last week. The benchmark of the United Arab Emirates stock exchanges of Dubai and Abu Dhabi dived 12.5 per cent this week, closing at 2,299 points from 2,626 points last week. Egypt's CASE 30, measuring the performance of the market's 30 most active stocks, also plummeted 12.00 per cent, to close week at 3,810 points compared with last week's close at 4,327 points.
