Arab bourses will retain bullish trend till year-end

AMMAN - Middle East stock markets are expected to retain their “upward trend” until the end of December, though fluctuations cannot be excluded due to the change of positions ahead of the new year, analysts said yesterday.

By (DPA)

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Published: Sat 18 Dec 2004, 11:03 AM

Last updated: Thu 2 Apr 2015, 11:48 AM

“We are optimistic that the upward trend will continue until the end of the year though at a lower pace due to the liquidation of old positions and the building of new ones,” Amer Muasher, head of the Brokerage Department at the Jordan National Bank, told Deutsche Presse-Agentur dpa.

“Therefore, we expect fluctuations in prices in the coming couple of weeks with investors focusing on blue chips with expected high profits,” he said.

Muasher and other portfolio managers expected the Palestinian and Iraqi elections set for January to have “positive impact” on regional markets.

Jordanian shares scored fresh gains in the week ending Thursday, propelled by the banking sector particularly the heavyweight Arab Bank.

The all-share price index of the Amman Stock Exchange gained 3.89 per cent, to close week at 4,219 points compared with 4,061 points last week, according to the ASE weekly report.

Saudi shares also continued to show strong performance following the recent downward correction.

The all-share price index of the Arab world’s largest bourse climbed 6.8 per cent this week, closing on Thursday at 8,175.76 points propelled by large blue chip gains, particularly banks, industry and the telecom sectors, according to the Bakheet Financial Advisors.

The Riyadh Bank share gained 14.5 per cent following a decision by the bank’s management to increase capital by distributing bonus shares.

The Saudi Arabian Basic Industries Co. (SABIC), the largest stock in the market, advanced 8.7 per cent, while the Saudi Telecom Co. (STC) surged 6.8 per cent.

The BFA expected the Saudi shares to “continue their gradual gains, but at a smaller rate, until releasing the fourth quarter’s results”.

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