AMMAN - Arab stock markets stand to gain from improving geopolitics in the region, particularly the national reconciliation in Lebanon and the Israeli-Syrian peace talks, financial analysts said yesterday.

“I believe regional bourses will respond positively to the geopolitical developments as represented by the subsiding of the Lebanese political crisis and the peace talks between Israel and Syria,” Wajdi Makhamreh, chief operating officer of Amman-based Sanabel International Holding said.

He said that the improving economic conditions in the United Sates that helped to alleviate slowdown predictions would have a positive impact on Middle East bourses.

The movement of oil prices and the second quarter results will have an impact on decisions of investors in the coming weeks, he said.

“However, we do not exclude profit taking intervals that put downward pressure on prices at times,” Makhamreh said.

Saudi shares lost further ground this week mainly under the downward psychological pressure of the listing of the 1bn free-float shares of Al-Inma Bank, according to the Riyadh-based Bakheet Investment Group (BIG).

The Tadawul All Share Index (Tasi) of the Arab world’s largest bourse shed 1.87% this week, closing at 9,491.31 points from 9,672.62 points last week.

Tasi is currently 14% lower than the year’s start, the BIG weekly report said.

The BIG expected “the negative psychological impact to dissipate” after the listing of Al-Inma Bank.

“This will help the market to rally during the coming period, given Saudi Arabia’s robust macroeconomic factors, surging oil prices and the attractive financial results of listed firms,” the report said.

Jordanian shares extended gains this week, led by blue chip firms particularly 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 1.32% this week, closing at 9,301 points compared with last week’s close at 9,179 points, according to the ASE weekly report.

Kuwait’s KSE all-share price index gained 0.2% this week, to close at 15,014 points from 14,979 points last week. The UAE benchmark of Dubai and Abu Dhabi stock exchanges went up 0.6%, closing at 6,205 points from 6,166 points last week. - DPA