Arab stock markets scored fresh gains this week, buoyed by reports that the US economy was slowly recovering and by stable demand for oil that has kept crude prices at around 75 dollars a barrel over the past couple of weeks, financial analysts said Friday, according to dpa. They pointed out that the nearing closure of the third quarter would also give impetus to markets mainly through window dressing moves that seek to improve the quarterly performance of financial services firms. "Despite profit-taking moves, Arab markets responded positively to reports that the US economy had surpassed recession in June 2009 and that it was well on its way to recovery," Nizar Taher, head of brokerage at the Jordan Ahli Bank, told the German Press Agency dpa. "I believe investors will be awaiting the third quarter results in the coming weeks, though the major factor affecting the direction of regional markets will be the restoration of confidence and getting rid of fears," he said. Taher said that the liquidity crunch and hesitation on the part of investment funds would remain an obstacle that impedes advancement of regional bourses. Saudi stocks rallied for the fourth week in a row, led by the petrochemical and banking sectors, as investors awaited the release of third quarter earnings. The Tadawul All Share Index (TASI) of the Arab world's largest stock exchange gained 1.25 per cent on a weekly basis to cross the 6,400-point psychological barrier and close at 6,434.90 points. Jordanian shares were the major loser this week due to what Taher described as concerns on the part of investors who echoed what was taking place at regional and world markets. However, Taher said that hopes were picking up due to a recent decision by the Jordanian government to set up an ad hoc committee for proposing steps to prop up the beleaguered Amman Stock Exchange (ASE). The ASE all-share index shed 0.64 per cent this week, closing at 2,309 points, according to the market's weekly report. The Kuwaiti stock exchange was the scene for profit-taking moves this week ahead of the third quarter results. Kuwait's all-share index edged higher, closing at 6,840 points compared with last week's close at 6,757 points. United Arab Emirates stocks scored fresh gains this week after reports that Dubai World had reached agreement with it creditors to reschedule about 25 billion dollar of its debts. The declaration by Nakheel, a real-estate subsidiary of Dubai World, that it was heading to complete its debt restructuring by issuing Islamic bonds, is expected to push up prices at the stock exchanges of Dubai and Abu Dhabi next week, analysts said. The Dubai benchmark climbed 2.5 per cent, closing at 1,689 points, while the Abu Dhabi index gained 1.25 per cent on weekly basis, to close at 2,639 points. Egypt's AGX30 index, measuring the performance of the market's 30 most active stocks, went up 2.9 per cent this week, to close at 6,720 points.
