Arab bourses buoyed by oil prices, see gains from Obama's speech

Arab stock markets ended week steady on rising oil prices and signs of ’shaky recovery’ in the world’s leading economies, financial analysts said Friday.

They contended that regional markets stood to gain in the long run from US President Barack Obama’s speech to the Muslim world from Cairo on Thursday.
‘Though Obama’s speech has been of political nature, I believe it will have a positive impact on regional markets at least in the long term, particularly if it succeeds to set the stage for the resumption of peace talks and business partnerships,’ Wajdi Makhamreh, Chief Operating Officer at Sanabel International Holding told the German Press Agency dpa.

Makhamreh attributed the steady performance of Arab stocks over the past few weeks to the ’shaky recovery of the US and other leading economies’.

‘However, it is still a psychological impact that has nothing to do with fundamental aspects. It may turn out to be of short-lived nature,’ he said.

‘We have to wait for the results of the second quarter to realize the direction of events and the true performance of listed firms,’ he added.

Saudi stocks rebounded this week, led by the petrochemical sector particularly the Saudi Arabian Basic Industries Corp. (SABIC) and Saudi Kayan, which gained 11 per cent and 17 per cent respectively.

Monsters and Critics