08/09/2018
* Majed Al-Khalidi from Riyadh
The declines of the Saudi market during yesterday's sessions are not proof of the existence of something that is not ideal for traders, as the market gave a lot of signals that the upward path needs for tranquility or correction of the price, because the market has seen a significant rise since the beginning of 2017.
These increases are close to 60 per cent of the lowest level achieved at the time, while the month of August ended the decline after the market lost its liquidity, which was significant at the beginning of this year.
The rise in the overall market led to higher returns to the highest level in a long time, where the market repeater reached the end of the second quarter of this year to close to a repeat of 18 times.
This is a high double that does not attract more liquidity flows to the market, especially investment liquidity. The duplicates that normally attract liquidity are between 12 and 13.
So it is natural that investment funds may choose another track in light of the rise of the market and access to these replicas, especially since the two-year high interest rate could be a strong reason for investors to consider this option, as Saudi Arabia's three-month interest rates were around 2.6 per cent. It is expected to continue to rise under the Fed's monetary policy.
The general index retreated to levels close to 7300 7000 points, which may push the market to a new upward wave, especially if it coincides with the positive results of companies for the third quarter, which are expected to be especially for the banking and petrochemical sectors.
* Economic Reports Unit
