Arab stocks lacklustre as markets comprehend quarterly results
TASI shed 0.6 percent on weekly basis
Arab bourses lost some ground last week as markets sought fresh incentives and struggled to preserve the momentum they achieved since quarterly earnings began to go out early in April, financial analysts said.
They expected Thursday’s plunge in oil prices on retreating prospects of world recovery would have a negative impact on regional markets next week.
”I believe yesterday’s drastic decline of crude prices on growing fears about global economic recovery will reflect negatively on Arab stock markets next week,” an Amman-based portfolio manager told Arab News.
”I think investors will now return to the speculative behavior after markets comprehended the profits of the first quarter, particularly of blue chips,” he said.
Oil prices fell by 10 percent on Thursday, to less than 110 dollars per barrel, on stronger dollar and weak economic data from Europe and the United States
Saudi shares were volatile last week as investors sought know the impact on markets of the killing of the Al-Qaeda leader Osama Bin Laden, a former Saudi tycoon, by a US secret assault team in Pakistan, analysts said.
The Tadawul All Share Index (TASI) of the Arab world’s largest stock exchange shed 0.6 percent on weekly basis, led by the petrochemical, banking and telecom sectors, and closing at 6,682.61 points.
”I expects markets to be calm and the benchmark to be flat in the coming days after the release of all quarterly results, particularly those of leading firms,” Saudi analyst Rashed Fouzan said.
He also expected speculative trading of small caps to dominate transactions at the Saudi stock exchange in the coming few weeks.