• Analysts: The stocks of the losing companies revive the speculation of the stock market


                 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.


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