Major Arab stock markets hit record levels this week mainly on the back of dividend distributions, high oil prices and the improving political stability in Iraq and the Palestinian territories. The regional stock markets are also gaining momentum in view of the high expectations of Q1/2005 profits.
Jordan National Bank's Head of Brokerage, Amer Muasher said that they remain optimistic at least in the short and medium term. However, Muasher expects short-lived profit-taking corrections to occur periodically. Jordanian stocks continued their gains for the 4th consecutive week, and Muasher expects the Amman Stock Exchange (ASE) and Arab bourses to benefit from capital outflows from Lebanon. The ASE all-share price index gained 3.4% last week, closing at 5,277 points.
According to the Bakheet Financial Advisors (BFA), Saudi shares also continued to scale new highs. The Tadawul All Share Index (TASI) of the Arab world's largest bourse gained 3.4% last week, closing at 9,432.41 points on Thursday. BFA said that presently, TASI is 14.9% higher than its level on the beginning of the year. In Kuwait, the KSE all-share price index gained 6% last week, to close at a record high of 7,189 points.
Egyptian stocks also continued their strong showing last week, with the Hermes all-share price index increasing 8.9% closing at an all-time high of 39,284.73 points.