Saudi stocks rose for the fifth week in a row to reach the highest weekly closing since October 2015, closing at 7,539 points, 200 points, 2.7% higher than expected, as 7,400 points were in resistance. They were expected to calm down at those levels, especially with the index rising by about 8%. However, the index completed the rise to enter the stage of overbought according to the weekly indices.
The continuation of the increase is possible due to the low profitability of the companies that affect the index, especially the banks, which are expected to achieve record gains, which also give a rewarding return to its shareholders. However, the accumulation of capital gains as a result of successive gains since last November represents a threat to the upside, especially in light of the decline in trading values and non-interaction with the wave of rise, which means a decline in the purchasing power in light of the continuous rise of the prices. In the last two sessions, the market showed signs of weakness of the uptrend with slight gains, and broke a series of six-session gains in a losing session, which also suffered minor losses. 7586 levels represent a resistance barrier while support at 7450 points followed by 7350 points.
Overall market performance
The general index opened its weekly session at 7338 points, falling in session and rose in the rest. The highest point at 7560 was a 3% gain, while it did not achieve a lower level of opening and ended the week at 7,539 points with a gain of 2.7% by about 200 points. Trading values rose by 16 percent to SR 17.8 billion, SR 36 billion per deal. While traded shares rose 13 per cent by 110,000 shares to 939 thousand shares, with a turnover of 1.8 per cent. Deals rose 14 percent to 484,000.
The "transport" sector declined by 1.26 percent, and followed by "food segmentation" by 1.15 percent. The "Media" sector rose by 8.6 per cent, followed by "food production" by 4.1 per cent, and "health care" by 3.9 per cent. The highest deliberation was "Basic Materials" with 29 percent, with a value of 5.2 billion riyals, followed by "real estate management and development" by 22 percent, with a value of 3.9 billion riyals, and followed by "banks" with 17 percent, worth 2.9 billion riyals.
The highest rise was "Rayaat" stock that rose 12 percent to SAR 47.05, followed by "Research and Marketing" by 11 percent to SAR 65.95. "Al Rajhi Takaful" comes in the third place with 9 percent lower than its precedent at SAR 65.43. There is a significant loss on "Atheeb Telecom" by 7 percent to SAR 6.37, followed by "Al Jawf" with 6.7 percent to SAR 29.94, and "Al-Lujain" by 5.4 percent to SAR 21.41. "Dar Al Arkan" had the highest turnover of SR3.3 billion, followed by "SABIC" by 11 percent at 2 billion, and "Al-Enma" by 8 percent at 1.4 billion.
* Economic Reports Unit