Amman - Arab stock markets incurred fresh losses this week as lack of confidence reigned and investors held low expectations regarding the first quarter results, financial analysts said Friday.

"I believe Arab bourses are heading to worse situations due to pessimistic expectations regarding the performance of listed firms in the first quarter of the year," Nizar Taher, head of brokerage at the Jordan Ahli Bank, told Deutsche Presse-Agentur dpa.

"I think ambiguity surrounding world markets help to enhance lack of confidence at regional markets with investors resorting to speculative trading to avert further losses," he said.

Saudi shares plummeted for the fourth consecutive week amid a spate of preemptive selling of blue chips particularly petrochemical and banking stocks before they announce their first quarter results.

The Tadawul All Share Index (TASI) of the Arab world's largest bourse plunged 5 per cent from last week, closing at 4,130.15 points.

TASI is currently 14 per cent lower than the year's start, according to the weekly report of the Riyadh-based Bakheet Investment Group (BIG).

"The Saudi stock market will continue its narrow fluctuation, while investors eye the upcoming corporate results for the first quarter of 2009," the report said.

Jordanian stocks lost fresh ground this week, ignoring the Central Bank of Jordan's decision to slash key interest rates by a half percentage point.

Distribution of dividends is sparking waves of stock selling regardless of the performance of these stocks, a development that refers to "lack of confidence," Taher said.

The all-share index of the Amman Stock Exchange closed week lower at 2,595 points compared with last week's close at 2,606 points due to persistent selling of strategic stocks mainly the Arab Bank, the Jordan Petroleum Refinery, the Arab Potash Co. and the Jordan Phosphate Mines Co.

Kuwait's KSE all share price index gained 0.3 per cent, closing week at 6,553 points.

The United Arab Emirates stocks closed lower in response to turmoil on the global markets that helped to worsen confidence further, UAE analyst Khalid Darwish said.

The all-share price index of the Dubai exchange shed 0.8 per cent, closing at 1,504 points while the Abu Dhabi bourse plummeted 4 per cent this week, to close at 2,318 points.

Egypt's AGX 30, which measures the performance of the market's 30 most active stocks, gained 3.5 per cent, to close at 3,701 points. (dpa)