Arab stock exchanges volatile as investors eye third-quarter results
Amman- Arab stock markets are expected to be volatile in the coming weeks with the advent of the Muslim fasting month of Ramadan and publication of third-quarter companz results, financial analysts said Friday.
"I believe regional markets will be volatile during the month of Ramadan, when investors usually prefer to stay on the sidelines," Wajdi Makhamreh, chief operating officer at the Amman-based Sanabel International Holding, told Deutsche Presse-Agentur dpa.
Saudi shares extended gains this week as the market reacted positively to the announcement by the Capital Market Authority (CMA) that allowed authorized persons to enter into swap agreements with non-resident foreign investors.
The Tadawul All Share Index (TASI) of the Arab world's largest bourse gained 5.1 per cent this week, closing at 8,898.97 compared to 8,465.7 last week.
TASI is currently 19.4 per cent lower than the year's start, according to the weekly report of the Riyadh-based Bakheet Investment Group (BIG).
The market was led by the banking and financial services, petrochemical industries and telecommunications sectors, the report said.
BIG expected the Saudi stock exchange to "perform steadily in the coming days as investors monitor the third-quarter results of listed firms particularly blue chips".
Jordanian shares rebounded strongly after last week's plunge which Makhamreh attributed mainly to the selling of stocks by foreigners, who moved to other more profitable markets like the United States.
The recovery was led by the Arab Potash Co., the Jordan Phosphate Mines Co. and the Jordan Petroleum Refinery.
The all-share price index of the Amman Stock Exchange gained 6.87 per cent, to close at 4,317 compared to last week's close at 4.040, according to the ASE weekly report.
Kuwaiti stocks lost some ground as speculation continued to affect decisions of investors. The KSE all-share price index shed 0.6 per cent, closing at 14,499.
The benchmark of the United Arab Emirates stock exchanges of Dubai and Abu Dhabi declined 1.5 per cent to close the week at 5,337.
Egyptian shares received a boost from foreign buying of leading stocks, analysts said. Egypt's CASE 30 index, which measures the performance of the market's 30 most active firms, gained 4.9 per to end the week at 8,375. (dpa)
