The easing of precautionary measures strongly supports the Saudi stock market

The main index “TASI” of the Saudi stock exchange, “Tadawul”, closed today’s session, in rise of 0.63%, gaining 74.25 points, and closing at the level of 11780.14, with a turnover of 7.5 billion riyals.

Retail and tourism stocks benefited from the easing of precautionary measures in Saudi Arabia, starting today, Sunday, which favored the rise in the index, which continues to reach the highest levels since 2006.

A member of the Saudi Economic Association, Walid bin Ghaith, said in an interview with “Al Arabiya” that the financial market receives strong support from “a coherent oil market and an increase in demand, in light of a deficit in the supply level of up to two million barrels per day”.

consistency of the oil

Bin Ghaith added that the oil market is likely to have greater cohesion with the entry of the winter season, continued demand and increased economic recovery, in light of the announcements by most countries of the return of activity and the lifting of the ban and precautionary measures against the pandemic.

The results of companies listed on the Saudi stock exchange were expected to increase by 15% in the third quarter of questyear, including petrochemical companies, after 9 companies announced in overall to have recorded a growth of 26% in their results so far.

Among the most important sectors that will record a good one performance, the banking sector is in frontline in research house estimates of 18% earnings growth in the third quarter, driven by the non-increase in debt provisions, an increase in credit portfolio size and continued growth in home loans after a period of decline.

Today, Sunday, the Kingdom of Saudi Arabia has begun to ease health precautions, based on what has been presented by the relevant health authorities, and given the progress in immunization of the society and the decline in the number of cases of coronavirus infection.

Mitigation measures include not committing to wearing a muzzle in open places, with the exception of excluded places, while continuing to commit to wearing it in Closed places.

Thamer Al-Saeed, chief investment officer of Mada’a Investment, said stocks benefiting from returning to normal in Saudi Arabia are all securities that deal directly with individuals, such as companies they own club sports, shopping malls, contractors and retail companies.

He pointed out that the Saudi stock market is going to post gains for the fourth consecutive year, and this is a precedent that the market was not used to before, noting that the market has several points to overcome and with it the collapse of the Saudi market in the 2006.

He explained that the market was able to exceed several levels for the year 2006, thanks to the presence of a large segment of investors who were not present on the market during that period, and that the adhesion of the market to global indices, contributed to the presence of an inactive segment of investors who are not affected by unjustified market movements and represent 4% to 6% of the total market value.

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