• Analysts: Saudi stocks are preparing for more liquidity and strong trading on the leading companies


    ​Abdulaziz Al-Faki from Dammam​

    ​Financial analysts expected a positive performance of the Saudi stock market in trading this week, in light of optimism sweeping the global markets with the approach of America and China concluding an agreement that saves the world from the consequences of a trade war.​

    ​They explained to "Al-Eqtisadiah" that the market ended trading last week with a series of hikes, affected by the entry of liquidity after refunding the surplus from Aramco's subscription, and by that the market had penetrated important and essential technical resistances.​

    Abdul Rahman Al-Sammari, the financial analyst, said, "The petrochemical sector will be targeted for a good rise after the trade agreement between China and America approaches, which will increase the demand for petrochemical products, and the prices of petroleum products will rise again."

    Al-Smmari added, "Some of the leading companies may witness recommendations in the coming period to increase their capital after the inclusion of" Aramco ", which may be reflected in the weight of the companies included in the index, and this is positive for the leading companies that have a huge statutory reserve, as the market is waiting for the period of the companies announcements for the quarter Fourth 2019, and continues for a period of three months instead of 30 working sessions, where the fourth quarter differs from the first three quarters, and the banking sector will have a good share of the last quarter because of the subscription commission obtained from the Aramco subscribers, and this is positive for the market for the coming period.

    For this part, Dr. Khaled Al-Binali, professor of finance and economics at King Fahd University of Petroleum and Minerals, said, "There is a state of optimism among dealers in the Saudi stock market, in light of indications of an agreement between America and China, which led to an improvement in oil prices, which reflects positively on the performance of global financial markets, including the Saudi market.
    Al-Binali pointed out that there is a positive optimistic view among dealers in the market in light of indications of the recovery of global trade movement in the event that a solution to the trade dispute between Washington and Beijing was reached, which will reflect on the oil market, which is the main driver of the global financial markets, including the Saudi market.
    In turn, Ahmed Al Salem, a financial analyst, said, "The market continued its gains achieving 8291 points, after it exceeded 8,300 points, as the market has resistance points above 8400 points, and that breaking it means the market will continue to rise."

    He explained that the good thing about the gains of the past week was that it was associated with high liquidity even though "Aramco" was in red, and this gave the market more confidence that watching it in red did not affect the decisions of traders, as there are sectors that witness unusual liquidity.

    Al-Salem indicated that the reservation that surrounded the market has become less noticeable and noticeably, but that trading since Sunday and the rest of the week must be cautious, since continuing the rise without taking profits will make the correction inevitable and somewhat more, explaining that the increases that are not punctuated by the periods of taking Profits usually make the trader anxious and make him more careful in dealing with the market, perhaps seeing this through a decrease in the value and trading volumes.​
    ​And it expected that the market will witness an opening today with a good rise and high trading in the first hour, then it will soon decrease in the second market hour, and it may reach the red color of the market in general. He stated that in the event of this scenario, this means that the market is moving at a level more than good, and gives indications that the market this week is largely able to break the resistance it will face with confidence.​

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