*Ahmed Al-Rasheed from Riyadh
Saudi stocks fell for the first week after Eid Al-Fitr holiday about 0.77 per cent to lose 64 points in 2 sessions and close at 8206 points, which is lower than last year's 3 per cent decline.
In the last ten years, the market has often risen after Eid al-Fitr except for the last two years.
The decline came despite the announcement of its accession to the Morgan Stanley Emerging Markets Index, which reveals that the market has already calculated the impact in trading in the last period.
The actual participation will be in the next year in May and August, which would make the focus of the market during the current period on the results of the second quarter, especially with the near completion.
These results are a major factor in the market movement, especially after the wave of recent highs. However, if companies do not show growth improves P/E and valuations of existing stocks, the market may find itself in a downward spiral, as there are no underlying factors as a sufficient force to maintain current levels at least.
Technically, the 21-day average is an important support barrier to hold in the sessions next week. It boosts risk appetite with an average of 8189 points. But breaking it will expose the market to a wave of decline to at least 8090 points.
While the resistance was at 8230 points, and exceeding them will increase risk appetite, which would be pushing the market to higher levels. The number of trading sessions during the week, two to three sessions before the Eid holiday.
Trading values declined by 51 percent by about 4 millions to reach SR 3.8 billion, or SAR 31 billion per transaction.
While traded shares fell 52 per cent by about 172 million shares to reach 156 million traded shares. Transactions fell 43 per cent by about 98 thousand transactions to reach 126 thousand transactions.
At the sector level, "insurance" accounts for 1.8 per cent, followed by "consumer services" at 0.6 per cent and "telecommunications" at 0.33 per cent.
While "trade and professional services" declined 2.5 per cent, followed by "food segmentation" by 1.45 per cent, and "banks" by 1.3 per cent.
At the stock level, "Amana Insurance" led the rise by 12 per cent, closing at 15.94 riyals, followed by "Medgulf" of 6.15 per cent to close at 20.72 riyals, then, "Al Rajhi Insurance" of 5.7 per cent to close at 58.70 riyals.
The decline was led by "MEPCO" of 5 per cent to close at 22.82 riyals, followed by "Al-Sorayai Group" of 4.6 per cent to close at SAR 14.98, and "SACO" of 3 per cent to close at SAR 117.20.