• "Food production" is pushing Saudi stocks making them lose opportunities to return to profitability


              Saudi stocks dropped for the second consecutive session to close at 7379 points, 20 points down 0.28 percent. The retract was accompanied by a rise in trading values ​​of SAR 3.9 billion. The decline came despite the rise in the "banking" sector, but the decline in food production with the decline of Almarai for the maximum pressure on the market and lost opportunities for return to profitability. Al Marai declined after Savola sold part of its stake in the company at 70 riyals, which led traders to sell the stock as a result of trading, which traders believe reflects fair value, increasing the market's exposure to more Pressure. On the other hand, we found the market to defend well support levels of 7360 points, the lowest point at 7359 points, one point behind the support mentioned in previous reports. The continuation of the market in trading above the support enhancing the chances of a return of the market to profitability, as breaking the support will expose the market further decline to 7250 - 7280 points.

    Market performance

    The general index opened at 7,399 points, making small gains to reach the lowest point at 7359, losing 0.54% at the end of the session, instead of half of the losses to close at 7379 points, losing 20 points, or 0.28%. Trading values ​​rose 837 million riyals by 27 per cent to 3.9 billion riyals, or 53,000 riyals per transaction. While traded shares rose 1.9 million traded shares by 1 percent to 131 million traded shares, with a turnover rate of 0.69 percent. falling 14 percent to 73,000.

    Sector performance

    Nine sectors rose against the rest, with "Investment & Finance" rising 0.7%, Transportation "0.5%" and "Insurance" 0.46%. Food production rose by 5.4 per cent, followed by utilities by 1.3 per cent and consumer services by 0.7 per cent.

    The highest drop was "food production" by 37 percent, valued at 1.4 billion riyals, followed by "basic materials" by 18 percent, with a value of 690 million riyals, and the third by "banks" by 17 percent at 663 million riyals.

    Stock performance

    The market traded 174 stocks against the retract of 85 shares and stability of the rest. Almarai was the top loser at 74.30 riyals, followed by Savola by 2 percent to close at 46.54 riyals, followed by Al Tayyar by 1.8 percent to close at 34.90 riyals. The top gainers were "Enaya", closing at SAR 24.06, followed by Solidarity Takaful (8.7%) to SAR 20.96 (3.1%) to SAR 19.61. Almarai had the highest drop of SAR1.3 billion (34 percent), AlEnma (412 million riyals) at 11 percent and SABIC at 10 percent.

    - Economic Reports Unit

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