* Ahmed Al-Rasheed from Riyadh
Saudi stocks rose to their highest level in three years after closing at 8,890 points with a strong boost from the banking sector, which led the rise. Banks, led by Al Rajhi, dominated the most positive list on the rise.
The rise comes as liquidity improved to more than 3 billion riyals, up 29 percent from the previous session.
So far, many companies have not disclosed their financial results. However, the positive outlook from the expert houses is encouraging traders to take action in the market, especially with the technical performance of the market that is rising above its previous peak at 8461 points, and as the market's current levels give rise to further gains that to 8620 points and may extend to 8800 points.
Eight companies have reported their financial results for the second quarter of this year, and the combined earnings showed a 2.4 percent drop to 1.1 billion riyals.
"Almarai" was the highest in terms of value at 661 million riyals, representing 58 per cent of the announced profits so far.
The profitability of three companies, notably "Al Yamamah Steel", fell by 91 per cent, while four companies rose in second-quarter profit and "FIPCO" was the best performer with 54 per cent growth.
Overall market performance
The general index opened at 8,405 points. The market moved to the highest point of the session at 8490 points, winning 1 per cent.
At the end of the session, the general index closed at 8,890 with a gain of 85 points, 1 per cent.
Liquidity rose 29 percent by about 75.3 million riyals to reach 3.3 billion riyals. Traded shares increased 14 percent by about 15 million traded shares to reach 124 million traded shares with a turnover rate of 0.24 percent. Deals rose 11 per cent by about 8000 per transactions to reach 91,000.
Sector performance
Nine sectors rose against the decline of the rest.
The rise was led by "Banks" by 2 per cent, followed by "Telecommunications" by 1.3 per cent and "Public Utilities" by 1.2 per cent.
While "Media" declined by 2%, followed by "Investment and Finance" by 1% and "Property Management and Development" by 0.8%.
The highest turnovers were "Banks" by 35%, with a value of SR 1.2 billion, followed by "Basic Materials" by 29% with a value of SR 983 million and "Real Estate Management and Development" by 8% with a value of 273 million riyals.
Stock performance
The rise was led by "Enaya" of 9.9% to close at SAR 28.95, "Amana Insurance" by 5.5% to close at SAR 22.38 and "Albilad" by 3.4% to close at SAR 25.60.
On the other hand, the decline was led by "SARCO" of 4.5% to close at SAR 46.10, followed by "Al-akaria" by 3.4% to close at SR 15, and "SRMG" of 2.3% closing at SAR 94.80.
"SABIC" had the highest turnover of SR 621 million (18 per cent), followed by "Al-inma" (17 per cent) wit a value of SR 571 million and "Al Rajhi" by 10 per cent with a value of SR 337 million.
* Economic Reports Unit
