• Saudi stocks ... Trading with high frequencies requires high growth in corporate profitability

    31/12/2020

    Ahmed Al-Rasheed from Riyadh

    Saudi stocks rose, to close at the highest level since July 2019 at 8760 points, winning 13 points by 0.15 percent, while the MT30 index, which measures the performance of the leading stocks, increased two points by 0.25 percent. The rise came with the mixed performance of sectors and stocks and a decline in liquidity, which reached its lowest level in two months. The market is still keeping the sideways track, and needs incentives to surpass it and enter new levels. The market is awaiting the end of the year for the emergence of corporate results for the fourth quarter, and with the market continuing to trade with high frequency, companies need to achieve high growth to keep pace with the expectations of dealers, as the emergence of results less than expectations will expose the market to a corrective wave.​
    Overall market performance
    Saudi stocks opened yesterday's session at 8744 points and traded between high and low. The highest point was at 8757 points, 0.33 percent, while the lowest point was at 8718 points, losing 0.11 percent. At the end of the session, it closed at 8760 points, winning 13 points, about 0.15 percent. Liquidity decreased 9 percent by 788 million riyals to reach 7.9 billion riyals, while traded shares fell 13 percent by about 36 million traded shares, to reach 238 million traded shares, and deals fell 9 percent by about 33,000 deals, to reach 341 thousand deal.​

    Sectors performance
    Ten sectors retreated against the rise of the rest, and the decline was led by "long-term goods" by 0.77 percent, followed by "retail luxury goods" by 0.38 percent, and "investment and finance" by 0.33 percent. The rise was led by “applications and technical services” by 3.2 percent, followed by “insurance” by 1.4 percent, and by “commercial and professional services” by 0.6 percent.
    The highest turnover was "basic materials" by about 17 percent with a value of 1.3 billion riyals, followed by "insurance" by about 13 percent with a value of one billion riyals, and "capital goods" by about 12 percent with a value of 919 million riyals.​

    Stock performance
    The rising shares led "Fitness Time" by 5.7 percent, to close at 77.70 riyals, followed by "MIS" by about 5.3 percent, to close at 97.10 riyals, and "Nadec" by about 3.9 percent, to close at 30.60 riyals. On the other hand, the decline was led by “Naseej” by 4.5 percent, to close at 102.80 riyals, followed by “Gulf Training” by 2.5 percent, to close at 22.90 riyals, and by “Extra” by 2.3 percent, to close at 87.50 riyals.
    The highest turnover was "Saco" with a value of 306 million riyals, followed by "cables" with a value of 256 million riyals, and "skill" with a value of 241 million riyals.

    Economic Reports Unit​



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