09/07/2011
Stocks to falter as holidays set in
TASIclosing at 6,612.46 points
Gulf and other Arab markets are expected to waver during summer holidays and the advent of the Muslim fasting month of Ramadan, tentatively set to start on Aug. 1.
The regional markets scored modest gains this week as investors appeared upbeat oversecond quarter earnings and surging oil prices, financial analysts said Friday.
Saudi stocks were volatile this week as investors awaited the release of the second quarter earnings, particularly those of the petrochemical and banking sectors, analysts said.
Tadawul All Share Index gained 0.55 percent on weekly basis, closing at 6,612.46 points.
Saudi analysts expected prices to plateau in the coming couple of weeks, as liquidity usually tapers off during the summer season and during the fasting month.
However, the Saudi market stands to gain in the medium and long terms from the surging oil prices and the government’s huge spending, Riyadh-based analyst Mohammad Anqari said.
The worst scenarios of the fallout of Arab revolts on regional markets is finding expression in the reported flight of foreign capital from the Arab region to seek more save havens in the world’s emerging markets, Makhamreh further said.
"Even Arab governments with surpluses are now reportedly seeking to invest their money outside the Arab region," he added without further elaboration.
Kuwait’s KSE All-Share Index edged higher closing week at 6,213 points compared with last week’s close at 6,212 points.
Stock benchmarks of Dubai and Abu Dhabi stock exchanges gained 2.7 percent and 0.39 percent, to close respectively at 1,558 points and 2,715 points. Qatar’s index gained 1.69 percent on weekly basis, closing at 8,502 points.
