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Arab bourses head to new all-time highs

“We believe Arab bourses, particularly in the oil-rich Gulf area, are still on a bullish course in view of the extensive liquidity seeking investment outlets,” an Amman-based portfolio manager told Deutsche Presse-Agentur dpa.

“We think that as long as oil prices continue to move above 60 dollars a barrel, unprecedented surplus petrodollar levels are expected to accrue to the Gulf producers with financial offshoots affecting neighbouring markets,” he said.

The Jordanian analyst echoed a report by the Riyadh-based Bakheet Financial Advisors (BFA), who expressed the conviction that high liquidity was the “main driving engine for the rise in stock prices” at the Saudi stock exchange, the Arab world’s largest bourse. However, they warned that a substantial part of the abundant liquidity was used by investors for trading speculative stocks.