"I believe regional stocks stand to gain from expectations of good third quarter results and soaring oil prices that give rise to huge surplus petrodollars that seek investment outlets in the region," said Waji Makhamreh, Investment Manager and head of brokerage at the Jordan Investment and Finance Bank.
"Also I think Israel's pullout from the Gaza Strip enhances political stability and peace chances in the region and encourages investors to channel part of their funds to the Palestinian territories," he said.
The all-share price index of the Amman Stock Exchange shed 1.15 per cent in the week ending on Thursday, closing at 8,009.81 points, according to the ASE weekly report.
"Transactions focused on firms with good half yearly results, while investors awaited new factors to build up fresh positions in the run-up for the Q3 results that are expected to start leaking at the end of August," Makhamreh said.
Saudi shares also continued to record all-time highs this week, propelled mainly by the performance of the Saudi Basic Industries Corporation (SABIC). The Tadawul All Shares Index (TASI) of the Arab world's largest bourse gained 2.8 per cent this week, closing Thursday at 14,313.83 points.
According to the Bakheet Financial Advisors (BFA), the TASI is currently 74.4 per cent higher than at the start of the year. The BFA expected the market to show "volatility" in the coming weeks, reflecting fluctuations of oil prices on the world market "which remain the major factor determining the market trend." Saudi Arabia is the world's largest oil exporter.
In Kuwait, the KSE all-share price index edged lower this week after a series of gains, closing at 9,333 points.
The United Arab Emirates stock exchanges gained 5.3 per cent on average this week as holiday makers started to return to the country.
The all-share price indexes of Abu Dhabi and Dubai exchanges gained 4.4 per cent and 5 per cent, closing at 5,115.4 points and 1,030.6 points respectively.Zuhair Kiswani from Al-Sharhan consultancy house expected UAE shares to score 'gradual gains' in the coming weeks.
The study takes into account premium office rents of Dubai International Financial Centre (DIFC) and Abu Dhabi Global Markets (ADGM)
Business2 days ago