Amman - Arab stock markets plummeted across the board this week in response to losses incurred by the world's major bourses, the Israeli attack on the Gaza Strip and falling oil prices, financial analysts said Friday.

They expected regional markets to suffer further in the coming weeks, amid expectations that upcoming releases of 2008 corporate figures might turn out worse that expected.

"I believe regional markets will be cautious in the coming couple of weeks as investors monitor the release of annual results," Wajdi Makhamreh, chief operating officer at Amman-based Sanabel International Holding, told Deutsche Presse-Agentur dpa.

"Investors expect the 2008 corporate results to come worse than expected due to the global financial turmoil and the subsequent recession," he said.

Makhamreh said that the performance of Middle East stock markets would depend, to a large extent, on "geopolitics and the outcome of the current initiatives that seek to establish a truce at the Gaza Strip."

Another major factor affecting Arab bourses is a stimulus package expected once the new administration of US president-elect Barack Obama is sworn in on Tuesday, he added.

Saudi shares suffered throughout the week, pulled down by the petrochemical and banking sectors.

The Tadawul All Share Index (TASI) plunged 7.3 per cent this week, closing at 4,935.33 points, down from 5,322.22 points last week.

Jordanian stocks also extended losses this week amid a persisting lack of confidence and the contraction of credit facilities by local banks, Makhamreh said.

The all-share price index of the Amman Stock Exchange shed 1 per cent this week, to close at 2,775 points from last week's close at
2,803 points, according to the ASE weekly report.

Kuwait's KSE all-share price index plunged 4 per cent, closing at 7,079 points from 7,372 points last week.

The benchmark of the United Arab Emirates stock exchanges of Dubai and Abu Dhabi declined 2.4 cent this week, closing at 2,626 points from 2,690 points last week.

Egypt's CASE 30 index, which measures the performance of the market's 30 most active stocks, plummeted 6.6 per cent this week, to close at 4,327 points compared with last week's close at 4,634 points.

Analysts blamed the decline on a sell-off throughout the week by foreign investors. (dpa)