Amman - Arab stock markets fell this week despite positive results for the first six months of the year, as investors appeared hesitant due to political developments and retreating oil prices, financial experts said Friday.

"We believe that markets have been affected before anything else by geopolitics and receding oil prices," Wajdi Makhamreh, Chief Operating Officer of the Amman-based Sanabel International Holding, told Deutsche Presse-Agentur dpa.

"However, we believe that regional markets will benefit in the long term from lower oil prices because they give boost to the world economy, particularly in the United States," he said.

Makhamreh predicted that Arab bourses would be in a "consolidation phase" in the coming months.

Saudi stocks resumed their downward trend this week after rebounding last week, despite better-than-expected results for the first half of the year.

The Tadawul All-Share Index (TASI) of the Arab world's largest stock exchange plunged 3.7 per cent this week, closing at 8,740.74 points from 9,080.87 points last week.

The TASI is currently 20.8 per cent lower than at the year's start, according to the weekly report of the Riyadh-based Bakheet Investment Group (BIG).

The market ignored the record half-yearly profits announced by leading firms, particularly the Saudi Basic Industries Corp. (SABIC), the Saudi Fertilizers Co. (SAFCO) and the Saudi Telecom Co. (STC).

"The market has been influenced negatively by investors' hesitancy resulting from external factors, foremost Iran's conflict with the West and falling crude prices," the BIG said.

"Barring any adverse regional developments, the market is set to rebound, given the fall of stock prices to attractive buying levels," it added.

Jordanian shares also extended losses this week as investors were forced to close their positions before the start of August.

The all-share price index of the Amman Stock Exchange shed 1.74 per cent this week, closing on Thursday at 4,629 points, according to the ASE weekly report.

Kuwait's KSE all-price index edged higher, closing at 14,977 points compared with 14,807 points last week. (dpa)