Amman - Arab stock markets lost fresh ground this week as investors' concerns mounted over plans taken by the United States and other major economic powers to come to grips with the deepening recession, analysts said Friday.

"Ambiguity apparently dominates regional markets as investors prefer to stay on the sidelines pending the emergence of clues as to the success of the US and European stimulus packages in spurring their shrinking economies," Wajdi Makhamreh, Chief Operating Officer at the Amman-based Sanabel International Holding, told Deutsche Presse-Agentur dpa.

"I believe Gulf bourses are more exposed to global turmoil than other Arab markets due to the relative correlation existing between Arab oil-rich countries and Western markets," he said.

Saudi shares plummeted for the third week in a row, led by the petrochemical and banking sectors.

The Tadawul All Share Index (TASI) of the Arab world's largest stock market, plunged 4.3 per cent this week, closing at 4,348.26 points.

TASI is currently 9.5 per cent lower than the year's start, according to the weekly report of the Riyadh-based Bakheet Investment Group (BIG).

The report attributed the continuing bleeding of the Saudi stock exchange to "the global turmoil and concerns sparked by negative economic indicators and doubts surrounding the stimulus plans".

The BIG expected "technical declines in stock prices in March due to the dividend distributions".

However, investors are expected to focus attention in the coming weeks on the first quarter results, the report said.

Jordanian stocks were volatile this week amid a liquidity shortage, profit taking moves and a spate of speculation whereby investors tended to sell blue chips and buy small caps, financial analysts said.

The all-share index of the Amman Stock Exchange closed lower at 2,606 points from 2,616 points last week, according to the ASE weekly report.

The Kuwaiti stock exchange was also the scene for sharp volatility this week amid reports that the Emir, Sheikh Sabah al-Ahmad al-Sabah, mulled the dissolution of parliament over an adamant move by Islamic MP's to question Prime Minister Sheikh Nasser Mohamamd al-Sabah.

Kuwait's KSE all-share price index gained 1.4 per cent this week, to close at 6,534 points.

The benchmark price of the United Arab Emirates stock exchanges of Dubai and Abu Dhabi shed 0.8 per cent this week, closing at 2,466 points.

Egypt's CASE 30 price index, measuring the performance of the market's 30 most active stocks, climbed 5.3 per cent, to close at 3,576 points. (dpa)