Amman - Arab stock markets dived for the fourth day in a row Wednesday amid a spiraling lack of confidence that the world financial crisis could be brought under control within a reasonable time, financial analysts said.

However, two of the major regional markets, the Saudi and Kuwaiti stock exchanges, trimmed their losses at a later stage apparently in response to local and global steps taken to stem the turmoil, including the reduction of prime interest rates by the world's leading central banks.

"We believe that the smallest investor in the Arab world is waiting for what is going to happen on the US stock market," Nizar Taher, head of brokerage business at Jordan Ahli Bank, told Deutsche Presse-Agentur dpa.

"Arab investors will be monitoring the impact of the interest rate cuts on the performance of the American and other world markets," he said.

Taher said that he was also optimistic that the relative improvement in the Saudi and Kuwaiti stock markets could have a positive impact on other Arab bourses on Thursday.

"Prices of stocks have gone down drastically and they provide a buy opportunity that could trigger a rebound," he added.

The Tadawul All Share Index (TASI) of the Saudi stock exchange, the Arab world's largest bourse, opened at a loss of about 8 per cent but closed at a decline of 1.5 per cent.

Kuwait's all-share price index opened at a loss of more than 3 per cent but closed at 1.41 per cent in the red.

The rebound came after the Central Bank of Kuwait cut the discount rate by 1.25 per cent and pumped fresh funds into the banking system.

The benchmark of the United Arab Emirates stock exchange of Dubai recorded one of its bloodiest days on Wednesday, declining by 8.43 per cent.

Jordanian shares also extended their losses on Wednesday with the all-share price index of the Amman Stock Exchange shedding 3.9 per cent. The decline brings to about 15 per cent the total plunge in four days.

The Egyptian market's CASE 30 index, which lost more than 10 per cent on Tuesday, opened trading on Thursday at a loss of about 10 per cent but closed at about a decline of 6 per cent. (dpa)