11/06/2017
SAUDI ARABIA (Reuters), Saudi Arabia stock market has
encouraged speculators to trade until they raised their share prices,
considering their risk, analysts said. .
"The
speculators rushed to buy the stocks of the losing companies in the stock
market in order to benefit from the volatility of their prices, which led the
prices of those companies to rise in a few hours, where they succeeded in
achieving the profits which encouraged them to continue despite the high risks
that surround these companies.
Al
Jabbab explained that the experience of the speculators is great, which has
achieved their goals of raising stock prices and achieving double profits and
rapid exit without losses even though these companies are losing and risky
trading, and pointed that speculators are keen to get out of companies losing
before the end of the working day which
gives them safety and their experience in stocks.
He
added that the market is moving in a high direction and that the stock market
index is waiting for good trading areas. This will increase liquidity in the
stock market and increase the market's attractiveness to traders over the long
term. "The market will continue to live with speculators until the market
returns after Eid, about the performance of the market over the long term, Al Jabbab
said: The monthly closing above 6783 points is very excellent and is in the
interest of the market and shareholders. We
are still optimistic that the market will register new targets, stressing that the
first positive signal is to penetrate the index and close over 7009 points, and
confirm the absolute positive to go to new peaks with a penetration of 7107
points.
For
his part, Muhammed Al Shammari, an analyst at the stock market, said that the
long experience held by speculators in dealing with losing companies gave them
knowledge of benefiting from their losses as well as how to benefit from
fluctuating prices and times of buying and selling, which enabled them to
profit despite the high risks.
He
explained the prices of fast losing companies and the variable, which is
falling and rising in one day encouraged speculators to buy in the losing
companies and in the hours of the retract in the price of the stocks and after
the purchase of the price of the stock speeding the speculators in the
immediate sale of stocks and thus achieved the benefit and double profit in a
large time, pointing that the risk of trading in losing companies is large and
requires experience in dealing with them and therefore poses a danger to the
inexperienced. He
said that speculators are looking for volatile stocks that are rising in stock
prices and falling within hours and are keen to trade them in the interest of
quick profit, saying: buy them at a time of retracting in price and then get
rid of them at a time of high price and some of them do not return to buy in
the same company but go to another company For fear of
loss.
He
pointed that the continuation of speculation requires the continuation of the
movement of the index at the current level with further rise because the retract
of the index will be reflected negatively on speculation and reduce until the
index to a certain level imposes a moratorium on speculation and at that time
opens the door for investors.
He
pointed out that the decline in the index is normal in light of the current
conditions prevailing in the market due to the reluctance of the majority of
speculators to speculate about their occupation and travel during the holiday days,
and investors are looking for suitable levels of entry and the majority of
traders collect to take advantage of prices during this period before the
market returns to normal activity after Eid Al Fitr.
He
stressed that the index will not exceed 7000 points during the month of Ramadan
due to the delay of investors and control speculators of the movement of the
index, which will affect the direct speculation, indicating that liquidity
requires the circulation of investors more than speculators, especially those
who have a negative impact on liquidity, as opposed to investors, saying: Investors
are currently out of the question and will continue until the index reaches
specific areas that open up to investors and coincide with a period of many
external stimuli as well as the return of travelers after the summer vacation.
Siraj
Al Harthy, an analyst at the stock market, said: "Speculation has
prevailed over trading in the stock market today, encouraging the raising of
speculation and profits in the market."
He
added that the high risk did not stop speculators from continuing the
speculation, especially in the losing companies whose prices fluctuate. He
pointed that it was a test of the break zone and then the decline to confirm
the break at 6709 points and that the increase in the number of shares was to
test the region before the rise, saying: Trading under a broken trend is very
dangerous and made good profits.
