Amman - Most of Arab stock markets extended losses this week ahead of Eid al-Adha festivities due to start on November 27, financial analysts said Friday.

They also attributed the plunge to declines on global markets, the foggy picture surrounding the world recovery and instable oil prices.

"I believe the consecutive declines are prompted by instability that characterises Arab markets at this juncture due to losses incurred by global bourses and the ambiguous picture of the prospects of world recovery," Nizar Taher, chief of brokerage at the Jordan Ahli Bank, told German press agency dpa.

"The unstable oil prices and the approaching Eid al-Adha holiday could also be blamed for the sluggish performance of the Arab stock exchanges," he said.

The Saudi stock exchange was the only Arab bourse that closed in the green this week after three weeks of consecutive decline, apparently due to the intervention of a state fund, analysts said.

The Tadawul All Share Index (TASI) of the Arab world's largest stock market gained 1 per cent this week, closing at 6,318.68 points.

TASI is currently 31.6 per cent higher than the year's start, according to the weekly report of the Riyadh-based Bakheet Investment Group (BIG).

The Saudi market was propelled by the banking sector, particularly the SAMBA Financial Group and Al Rajhi Bank, as well as the petrochemical sector, the report said.

The Public Insurance Foundation stepped in to buy selective stocks and stop the drain on Saudi shares that lasted for three weeks, analysts said.

The BIG expected the Saudi stock market to "maintain it positive performance" if oil prices continued their upward trend in the coming weeks.

Jordanian shares lost further ground this week due to a persistent shortage of liquidity and weak foreign demand, Taher said.

The all-share price index of the Amman Stock Exchange shed 0.73 per cent this week, to close at 2,573 points, according to the ASE weekly report.

Kuwaiti shares plummeted further this week with analysts attributing the plunge to the failure of the government to pump funds in the market to shore up prices and to renewed tension between the government and the National Assembly.

Kuwait's KSE all-share price index sank 4.3 per cent this week, closing at 6,754 points.

The benchmarks of the United Arab Emirates stock exchanges of Dubai and Abu Dhabi shed 1.7 per cent and 1.5 per cent to close respectively at 2,130 points and 2,926 points.

Egyptian shares incurred heavy losses this week due to a sharp retreat in foreign buying and the approaching Muslim festivities, analysts said.

Egypt's AGX30 index, measuring the performance of the market's 30 most active stocks, sank 8.1 per cent this week, to close at 6,181 points from 6,726 points last week. (dpa)