• Saudi stocks break 8,000 points as the investors lost the risk appetite



    * Ahmed Al-Rasheed from Riyadh


    Saudi shares edged up a second straight session to close at 7,788 points, losing 134 points, 1.68 percent.

    The market performance was worse than the previous 50-session average; which is showing the severity and length of the current declines that in turn reinforce selling pressures.

    The previous report pointed to positive signs in the market, and showed early trading in yesterday session to improve performance until the index rose by about 0.3%

    However, the selling pressure returned to the market to break the 8000 points barrier and close below the support points, which is showing the market loss of risk appetite after the emergence of most of the results of companies and the conversion of consolidated profits from growth to a decline of 18 per cent to 23 billion riyals.

     The rest of the companies did not disclose their financial results. Corporate profits are the main engine of the market, so they ignored the improvement in oil prices and aligned with the profitability of declining companies.

     The low profitability of companies lifted from the repeater of market profitability will press the market to retreat, and the levels are 7771-7789 support points while the resistance was at 7900-7927 points.


    Overall market performance

    The general index opened at 8,012 points, trading between high and low.

     The highest point was at 8034 points, 0.27 per cent, while the lowest point was at 7858 points, lost 1.9 per cent.

    At the end of the session, it closed at 7878 points, losing 134 points, 1.68 per cent.

    Liquidity declined 480 million riyals by 11 percent to reach 3.9 billion riyals, by about 34,000 riyals.

    Traded shares fell 2 per cent by about 4 million shares to reach 187 million shares traded, and the turnover rate was 0.36 per cent.

    The deals fell 9 per cent by about 10,000 to reach 112,000 deals.


    Sector performance

    Two sectors rose against the rest, and the stability of "medicines".

    The rise was led by "Media" that rose 1 per cent, followed by "Commercial and Professional Services" of 0.3 per cent.

    While the decline was led by "Telecommunications" that dropped 3.2%, followed by "Banks" of 2.4% and "Food Production" of 2%.

    The main turnovers were "basic materials" of 31 per cent at a value of SAR1.2 billion, followed by "banks" of 24 per cent at a value of SAR 927 million and "Real Estate Management and Development" of 14 per cent at a value of SAR 556 million.


    Stock performance

    The decline was led by "enaya" that close at SAR 11.06, followed by "Zain KSA" (6.49%) to close at SAR 6.77 and "Malath Insurance" (6%) to close at SAR 12.99.

    In contrast, the rise was led by 'Takween" that rose 6.7 percent to close at 9.96 riyals, followed by "BCI" of 3.1 percent to close at SAR 24.32 and "Astra Industrial" of 2.3 percent to close at SAR 19.42.

    "Dar Al Arkan" had the highest turnover of SAR 495 million (13 per cent), followed by "SABIC" of SR 477 million (12 per cent) and "Alinma" of 427 million (at 11 per cent).


    * Economic Reports Unit​

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