Local investors expect profitable reconstruction contracts

The Tadawul All-Shares Index (TASI) of Saudi Arabia, the largest stock market by capitalisation in the region, has reached 2,944 points.

It has now gained 16.9% on the year, 16% since the start of hostilities on 20 March, to beat the previous high of 2,927 on 20 May last year.

The Saudi market's capitalization shot above $100bn for the first time last week.

Regional investors a betting on big contracts for local companies for post-Saddam reconstruction projects.

Regional gains

"It appears the investors' impression that the impact of the US-led war on Iraq would be limited and contained within a small geographic location has reflected itself on confidence levels," said Bakheet Financial Advisors.

The Kuwait Stock Exchange (KSE), the second largest regional exchange, on Sunday closed at a new record high of 3,046, having gained 28% on the year.

Last Sunday it broke the previous high of 2,823 points reached in November 1997.

Oman's bourse, with a capitalisation of $4bn, has reached a two-year high after rising 5%.

Qatar's CBQ Index has risen about 13%, United Arab Emirates has gained 1.3% and Bahrain's Stock Exchange is up 1%.