• Saudi stocks break the trend of oil and failed to recover the level of 7000


               Saudi shares retreated after two sessions of the rise to close at 6941 points, 50 points, down 0.7 percent. He was at the head of the pressure on the market "banks" led by "Al Rajhi." The market declines are in spite of the improvement in oil prices, which have been playing a role in influencing the market, but the movement of the index went on the opposite direction of oil in about a month. This opposite relationship is typical of the market, although there are no obvious internal factors that negatively affect the market.
    Despite these sharp fluctuations and various factors, liquidity is unaffected, where it has often traded between two billion and three billion riyals six months ago, and the decline in liquidity justified the decision of the Capital Market Authority to raise the margin of coverage from 34 percent to 50 percent, It is important to reduce the margin of coverage due to the low volume of liquidity in the market, in addition to the decline of replicates of the market, and some banks are trading at or below their book value despite the strength of their financial position and good distributions in a strange phenomenon.
    The market looks stable over the past few sessions but the technical aspects do not look encouraging as the market is trading below the 200 day average and the market is unable to return above 7000 points. The fundamentals can not be relied on for the time being due to the sharp waves of declines that occur despite the market having good fundamentals before the downturns. However, 6870 points are the latest defense lines of the market, without which the market will enter a new wave of decline and may be more severe.

    Market performance
    The index opened at 6,992 points, making little gains to the lowest point at 6929 points, losing 0.9 percent. At the end of the session, the general index closed at 6941 points, losing 50 points, or 0.7 percent. Liquidity rose 43 million riyals by 1.8 percent and the average value of the deal was 35.3 thousand riyals. While traded shares increased 13 million shares by 13 percent to 121 million traded shares, with a drop rate of 0.6 percent. The deals fell 741 transactions by 1 per cent to 71 thousand deal.

    Sector performance
    Four sectors rose against the rest. The "medicines" rose by 0.33%, followed by "investment and finance" by 0.18% and "long-term goods" by 0.1%. Commercial and professional services were down 2.3 per cent, followed by luxury goods segmentation by 1.6 percent and food production by 1.5 percent.
    The highest drop was "Banks" with a value of SR 709 million (28%), "Basic Materials" (25%) at SR 634 million and "Insurance" (14%) at SR 344 million.

    Stock performance
    The market traded 176 stocks, 131 losers against 36 shares and 9 shares. Malath Insurance was the top loser at SAR16.64, followed by "advanced" by 8.4% to close at SAR12.88 and "Red Sea" by 4.6% to SAR 19.11, on the other hand, the Saudi Group shed 3% to close at 21.73 riyals, followed by Namaa by 3 per cent to close at 17.94 riyals, and the third was Saudi Budget, which fell 2.89 percent to close at 25.89 riyals.
    The highest drop was Enma  456 million, followed by SABIC (SAR 381 million), and Dar Al Arkan third with SAR23 million 9 percent.

    -Economic Reports Unit

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