Saudi shares continued to rise for the fifth session in a row to close at 7,780 points, the highest level since October 2015, with the highest trading turnover since November after reaching 5.9 billion riyals. The rally was supported by basic materials sector, especially SABIC. The market was subjected to selling pressure during the session, losing about a third of the gains with the decline of the number of sectors higher than yesterday's meeting. This indicates a growing desire to sell in the market, which may affect the ability of the index in the continuity of rising. The levels of 7700 points support the index, while the resistance was at 7830 points. The increasing appetite for selling from speculative portfolios seeking capital gains, especially after the recent spike in which some stocks have made good price hikes. However, the falls, if any, will be secondary, as the market enjoys good returns, especially in the banking sector. Many companies have yet to announce their financial results, which may be supportive of the market. And the market's proximity to international indices is an important incentive.
Overall market performance
The general index opened at 7696 points, and headed towards the highest point at the session at 7827 points, winning 1.7%. At the end of the session, it trimmed its gains to close at 7,780 points, gaining 84 points, 1 percent. Liquidity rose 28 percent about 1.3 billion riyals to reach 5.9 billion riyals, or 43,000 riyals per transaction.
Traded shares increased by 43% about 79 million shares to reach 263 million traded shares, with a turnover rate of 0.5%. Transactions rose 26 percent to reach 138,000 transactions.
Sector performance
Six sectors retreated against the rise of the rest, and the stability of "medicines." The rise was led by "Food production" that rose by 5 percent, followed by "retail luxury goods" by 3.8 percent, and "public utilities" by 2.3 percent. The decline was led by "health care" by 1 percent, followed by "media" by 0.59 percent, and "food fragmentation" by 0.3 percent. The highest turnovers were "Basic Materials" (33%) with a value of SR 1.9 billion, followed by "Banks" (21%) with a value of SR 1.2 billion, and "Real Estate Management and Development" (16%) with a value of SR 976 million.
Stock performance
The rise was led by "Petrochem" at the maximum to close at 24.48 riyals, followed by "Walaa Insurance" by 7.68 percent to close at 35.18 riyals, and "Savola Group" by 6.73 percent to close at 41.54 riyals. On the other hand, the decline was led by "Care" by 2.3% to close at 56.72 riyals, "SIECO" by 2% to close at 274.82 riyals, and " Nama Chemicals" by 1.84 percent to close at 17.61 riyals. The highest turnovers were "Dar Al Arkan" with a 14 percent stake of SR 822 million, followed by "SABIC" of SR 810 million at 14 percent, and then "Alinma" with SAR 553 million by 9 percent.
* Economic Reports Unit
