Amman- Arab stock markets fluctuated violently this week, reflecting turmoil on the world markets and lack of confidence that measures taken by the world's largest economies could succeed in handling the global financial crisis, financial analysts said Friday.

"We believe that the psychological impact of developments on world markets will continue to be felt in the Middle East bourses for some time to come," Wajdi Makhamreh, Chief Operating Officer at the Amman- based Sanabel International Holding told Deutsche Presse-Agentur dpa.

"Fears of retreating results of listed firms in the third and fourth quarters due to recession fears are also expected to have negative impact on investors," he said.

Regional analysts also cited the rapidly falling oil prices and the consequent decline of surplus petrodollars due to accrue to oil- producing countries in the region as an additional factor that was due to leave its toll on regional markets.

Saudi shares, which suffered heavy losses last week, rebounded this week, apparently making benefit from assurances about the strength of the Saudi economy and the good performance of leading stocks, mainly the Saudi Basic Industries Corp. (SABIC) as well as the banking and telecommunication sectors.

The Tadawul All Share Index (TASI) of the Saudi stock exchange, the Arab world's largest bourse, climbed 11.4 per cent this week, closing at 6,863.15 points.

TASI is currently 37.8 per cent lower than the year's start, according to the weekly report of the Riyadh-based Bakheet Investment Group (BIG).

The BIG expected the Saudi market to remain volatile in response to fluctuations on the world markets "until fresh news reinstates confidence of investors in the Saudi market".

The Saudi Currency Authority, the country' central bank, said Thursday that it would guarantee the flow of liquidity to banks as well as the bank deposits.

It was the latest step by the world's largest oil exporter to dissipate investors' fears about the implications of a ushering world recession.

The BIG report indicated that oil prices would remain crucial to the performance of bourses in the oil-rich Gulf region.

As a defensive step, OPEC said Thursday that it was shifting to an earlier date, to October 24 from November 18, the meeting designed to study the repercussions on member countries of sliding crude prices.

Qatari Oil Minister Abdullah al-Attiyah told al-Jazeera television on Thursday that he expected the oil cartel to cut production "by one million barrels a day or more".

Jordanian shares also moved up and down this week in tandem with global markets despite warnings by officials and experts that the Jordanian economy was immune against direct fallouts of the global crisis.

The all-share price index of the Amman Stock Exchange gained 0.94 per cent this week after plunging 15 per cent last week, to close at 3,596 points, according to the ASE weekly report.

Kuwaiti shares also moved side ways this week, but was deemed by analysts as the most stable market in the region.

The KSE all-share index shed 3.1 per cent this week, to close at 11,544 points from 11,906 points last week.

Egypt's CASE 30 index, which measures the performance of the market's 30 most active shares, gained 2.2 per cent this week, closing on Thursday at 5,792 points from 5,667 points last week.

The United Arab Emirates stock exchange of Dubai witnessed the widest fluctuations in the area this week. The market's benchmark price closed week at 3,204 points marginally up from 3,197 points last week. (dpa)