Amman - Arab stock markets plunged this week under geopolitical pressures of the Iranian nuclear issue and concerns about a US economic slowdown, financial analysts said Friday.

However, they believed surging oil prices would boost regional bourses in the medium and long terms.

"Despite expectations of good semi-annual results, regional markets were this week the scene for panic sell-offs, apparently in response to political developments relating to the standoff over the Iranian nuclear file," Wajdi Makhamreh, Chief Operating Officer of the Sanabel International Holding, told Deutsche Presse-Agentur dpa.

Makhamreh and other analysts also attributed the decline at Arab bourses this week to losses incurred by global stock markets in response to renewed US recession concerns.

Nevertheless, he said, regional stocks were poised to rebound in the coming weeks, buoyed by half-yearly results and the huge surplus of petrodollars due to accrue to Arab oil exporting countries.

"Big funds have started sending their representatives to the region to appraise the emerging investment opportunities," Makhamreh said.

Saudi shares extended losses this week mainly due to "the political tension between Iran and the West" and the turmoil at world stock markets, according to the Riyadh-based Bakheet Investment Group (BIG).

The Tadawul All Share Index (TASI) of the Arab world's largest stock exchange shed 5.0 per cent this week, closing at 8,998.28 points from 9,467.68 points last week.

TASI is currently 18.5 per cent lower than the year's start, according to the BIG's weekly report.

"The Saudi market retreated despite the second quarter results which were deemed better than experts expected, particularly the banking and petrochemical sectors," the report said.

"With further good results being announced, we believe this will bolster investors' confidence and help reverse the downward trend," it added.

Jordanian shares plunged this week in what Makhamreh described as a "deep correction move" which was led by strategic stocks mainly the Jordan Petroleum Refinery, the Jordan Phosphate Mines Co. and the Arab Potash Co.

The all-share price index of the Amman Stock Exchange shed 4.08 per cent, closing at 4,556 points compared with last week's close at 4,750 points, according to the ASE weekly report.

Kuwaiti stocks slid for the third week in a row in what analysts described as concerted downward pressure on prices by leading funds.

The KSE all-share price index declined 3.1 per cent, closing at 14,895 points from 15,376 points last week.

The all-share price index of the United Arab Emirates stock exchanges shed 1.9 per cent, closing week at 6,011 points from 6,134 points last week. (dpa)