*Abdul Aziz Al-Faki from Dammam
Financial analysts said that since the beginning of the year 2019, Saudi stocks have witnessed a positive trading movement as they succeeded in penetrating the 8,700 points, the highest level since August 2015, and ruled out a significant impact of the sharp decline in the closure of US markets on the domestic market.
They stressed that their impact is temporary and limited, as the market depends more on local factors as the results of financial companies and movements of the oil markets and are less affected by the international downturns.
They explained to AlEqtisadiah, the Saudi market has a positive relationship with the US market and may be more severe in the case of the decline and weaken significantly in the case of the rise.
Therefore, any immediate bearish correction of the S & P500 is quickly reacted by the TASI indicator.
Emad al-Rashid, a financial analyst, said that the Saudi market has been witnessing since the beginning of this year, a positive trading movement despite the negative conditions of some companies and the achievement of a decline in profits and record large losses.
He added that the market was able to break the barrier of 8700 points, which has been trading lower than since August 2015.
This is a positive to continue to rise and break the barrier of 8900 points with 9120 expected points.
He explained that what will contribute positively and directly to continue this positive scenario, which are banking, communications and petrochemical sectors, which will be an attractive factor for investors in the coming period, despite the disparity in the profit replicates of the companies of those halls.
He added that since the activity of trading the market, which some attributed to the entry of foreign investors; however, this belief is unlikely as the market does not suffer from lack of liquidity as much as suffer from lack of activity in trading, where the trader knows that the value of liquidity that will enter will not be more than 20 billion dollars.
This value does not have a significant impact on the market.
He pointed out that the entry of foreign investors may have contributed to draw attention to the available investment opportunities.
He said that the most important factors motivating the foreign investor to enter the market is to link the riyal to the dollar, which makes stability for the non-fluctuation of currency prices and thus eliminate the concern of the foreign investor.
For his part, Ahmed al-Salem, a financial analyst, said that the decline of the US market was expected more than a year, as a result of the size of the high rise in the past 10 years.
However, the worrisome and bad thing for the global economy is the magnitude of the decline and the time lag it will take.
If it is fast and harsh at the beginning, the impact on global markets will be large depending on the size and height of each market, as there are markets will suffer a lot.
However, the Gulf markets, in addition to its performance in recent years in terms of rising indicators, will be the least affected by the volatility of US markets, and may loom unexpected opportunities due to declines in US stocks.
He added that after the deadline for the announcement of the full financial results of companies, the market is expected to experience a profit-taking wave of confidence in the market.
But. this is weakening the trend of foreign investors continuing to increase their portfolios in selected stocks such as telecommunications, which is a sector that opens the appetite of foreign investors in the procurement process, as well as the insurance sector where the investor recognizes its importance as an important source of any portfolio in the global markets, and this investor is watching this sector, but with some caution and caution.
In addition, Dr. Khaled Al-Banali, Professor of Finance and Economics at King Fahd University of Petroleum and Minerals, said that the reason for the decline in the US market Friday is the result of expectations of a slowdown in economic growth, which will negatively affect the price of oil, although Saudi Arabia continues to reduce the volume of oil production.
So, the oil prices will be mostly between knit to a bit weak, which will have a negative impact on the US market.
This will be reflected psychologically on the Saudi market, so it is expected to fluctuate clearly in its dealings during this week, but soon return to stability and improvement in April.