Saudi shares rose for the second consecutive week, closing at 11,417 points, with gains of 97 points, or 0.8%, the highest level since January 2008.
While the MT30 index, which measures the performance from The major stocks closed at 1547 points, with gains of 17 points By 1.1%, according to the newspaper Al-Eqtisadiah.
The rise came despite the decline and stability of most sectors, showing the contribution of major stocks in supporting the market’s uptrend.
Earnings are lower than the previous week, which shows caution escalating among the dealer after the market approached its highest level at 11895 points since the financial crisis, in what constitutes an important resistance to market behavior, and therefore the trend will be determined from a technical point of view.
On the other hand, the fundamental factors are still broadly unchanged as we expect the companies’ results for the third quarter to the end of the quarter.
The market is trading at multiple 28x profitability after Aramco ruled out the size difference, levels the market was not used to trading in long before the Corona pandemic.
And higher profitability multipliers require higher growth in corporate profitability to keep prices at attractive liquidity levels.
Interest rates are an important factor for market stability in the coming period, as increasing them will cause the market to yield lower returns than fixed income, or at least not give investors an acceptable risk premium, which exposes them to selling pressures, especially when the cost of borrowing is higher than market returns.
Read More About: Business News