The Saudi stock market fell 0.8%.. and expert: interest pressures affect the performance

The Saudi stock market fell today, Sunday, amid the decline in oil prices over the past week and the revaluation of asset after the increase in interest rates, but the Saudi index maintained its stay above the level of 11 thousand points.

The crude oil benchmark recorded losses for the week, as a barrel of Brent crude lost about 9% and West Texas Intermediate crude lost about 10%.

The leading market index (TASI) fell by 0.8%, or the equivalent of 88 points, to 11053 points.

The value of the trades was 3.1 billion riyals through the trading of approximately 86.4 million shares.

Prices of 49 stocks rose, led by “National Education” by 8.56%, compared with 156 stocks led by “Shams” by 9.94%, among 218 listed companies.

For his part, Abdullah Al-Rabadi, managing director and CEO of Rasana Financial Company, said that there are many factors affecting the Saudi market in the current period, but the most important factor is the increase in interest rates.

Al-Rabdi added, in an interview with Al-Arabiya, that as soon as interest rates rise, all the assetcosts and alternative opportunities are re-evaluated.

He says the cost of funds has increased since the beginning of the year, noting that the price of SIBOR in Saudi Arabia has reached 6% and US interest is 4%.

He continued: “Until interest rate hikes subside and inflation levels stabilize, then we could see stability in the markets or a change in trends.”

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