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Arab stocks seen scoring fresh gains in January

AMMAN — Arab stocks, which performed very well in 2005, are expected to score fresh gains early in January, propelled by promising prospects of financial results in the fourth quarter of the year, analysts said yesterday.

Preliminary reports indicate the benchmark prices of Saudi, Jordanian and Kuwaiti shares climbed by 104 per cent, 93 per cent and 79 per cent respectively.

“Against the backdrop of this information, I believe regional stocks are heading to a fresh rebound in the first two weeks of January, buoyed by expectations of good 2005 results which are due to start leaking after the New Year holiday,” Amer Muasher, head of brokerage at the Jordan National Bank said.

He conceded that the increasing capital of several listed firms and the establishment of others could have a “negative effect” on stock prices, but said this impact would be “short-lived”, given the large volume of liquidity - both local and foreign - seeking investment outlets.

The all-share price index of the Amman Stock Exchange shed 1.26 per cent this week, closing at 8,192 points, according to the ASE weekly report.

Meanwhile, the Jordanian bourse’s CEO Jalil Tarif has announced that the ASE index climbed 93 per cent in 2005, while the value of Jordanian shares grew by 105 per cent, to 26.7 billion Jordanian dinars ($37.7 billion).

The Saudi stock market, the Arab world’s largest bourse, continued to be volatile this week ahead of the new year.

The Tadawul All Shares Index (TASI) fell 0.3 per cent this week closing on Thursday at 16,749.95 points, which represents 104.1 per cent growth over the year’s start, according to the Bakheet Financial Advisors (BFA).

They expected the results of blue chip and petrochemical firms to have a “major impact” on the market after the release of their 2005 balance sheets.

Kuwait’s KSE all-share price index edged higher this week, closing at 11,445 points compared to last week’s close at 11,429 points.

The KSE benchmark price gained 79 per cent during 2005, as it started the year at 6,409 points.