Amman  -  Arab stock markets extended gains this week, buoyed by first-quarter results and surging oil prices, and financial analysts said Friday they were "cautiously optimistic" over the performance of regional bourses in the coming weeks.

"We are cautiously optimistic over the behaviour of regional bourses in the coming weeks, because speculation continues to be a key driving force for markets," Wajdi Makhamreh, Deputy CEO of the Amman-based Sanabel International Brokerage told Deutsche Presse- Agentur dpa.

"Stock markets continue to act as haven for investors who conduct trading on the basis of fundamentals and not for speculation purposes, given the huge amounts of liquidity seeking investment outlets," he said.

The Saudi stock exchange, the Arab world's largest bourse, kept up its upward trend this week amid a noticeable rise in trading volumes that reflected growing investor confidence.

The market's Tadawul All Share Index (TASI) gained 3.2 per cent this week, surpassing the psychological barrier of 10,000 points and closing at 10,066.16 points, compared with last week's close at 9,754.10 points.

TASI is currently 8.8 per cent lower than the year's start, according to the weekly report of the Riyadh-based Bakheet Investment Group (BIG).

The report expected the "positive environment surrounding the Saudi market", as represented by the first quarter results and soaring oil prices, to push prices up in the coming weeks.

Jordanian shares were steady this week, propelled by blue chip firms, foremost the heavyweight Arab Bank, which posted a 24-per-cent increase in its quarterly profits.

The Amman Stock Exchange (ASE) also drew support from the Arab Potash Co., the Jordan Phosphates Mines Co. and the Jordan Petroleum Refinery, Makhamreh said.

The ASE all-share price index edged lower, closing week at 8,712 points from 8,739 points last week, according to the market's weekly report.

Kuwait's KSE all-share price index gained 1.0 per cent, closing at 14,755 points from 14,600 points last week.

The benchmark of the United Arab Emirates stock exchanges of Dubai and Abu Dhabi closed up 1.0 per cent at 6,262 points compared with last week's close at 6,210 points. (dpa)