Saudi stocks retreated, but maintained levels of 7500 points to close higher than eight points and losing only two points. The decline came under pressure from the insurance sector. Banks played a supporting role led by "Al-Ahli". Most insurance companies fell after announcing financial results last year.
Despite the negative announcements, the whole sector was able to achieve profits of about 1.5 billion riyals by 3 percent, which is the result of 30 companies; all of them were winners except five companies.
The market has support at 7460 levels, and its maintenance is important, as the market does not slip into a wave of decline until 7200-7230 points. A return above 7550 resistances will boost risk, which is pushing the market to try to breach 7700 points.
Overall market performance
The general index opened at 7,510 points, trading between high and low. The highest point was at 7554, winning 0.59%, while the lowest point was at 7498 points, losing 0.16%. At the end of the session, the general index closed at 7508 points, losing two points with a slight decline. Liquidity decreased by 1.2 percent, by about 42 million riyals to reach 3.5 billion riyals at a rate of 35 thousand riyals per transaction. Traded shares rose 6 percent by about 9.6 million shares to reach 163 million traded shares, with a turnover rate of 0.31 percent. Transactions rose 3 percent to reach 99,000 transactions.
Ten sectors retreated versus the rest. The downgrade was led by "Insurance" by about 1.9%, followed by "Investment and Finance" by about 0.57%, and then "Long Term Goods" by about 0.4%. While the rise was led by "Food fragmentation" by 2 percent, followed by "energy" by 0.8 percent, and "utilities" by 0.67 percent.
The highest turnover was "Banks" by 25 percent at a value of SR 873 million, followed by "Basic Materials" by 19 percent at a value of SR 662 million, and "Real Estate Management and Development" by 17 percent at a value of SR 584 million.
The rise was led "SIECO" for the maximum to close at 202.40 riyals, followed by "Medgulf Insurance" for the maximum to close at 22.90 riyals, and the third "Saco" by 3 percent to close at 121.46 riyals. On the other hand, the decline was led by "Wafa Insurance" that closed at SAR 18.60, followed by "Amana Cooperative Insurance" by 8.26 percent to SAR 19.76, and "Solidarity Takaful" with 7.8 percent to SAR 22.99.
The highest turnover was "Dar Al Arkan" with 13 percent (valued at SR 463 million), followed by "Alinma" with 11 percent (valued at SR 400 million), and then "SABIC" with 9 percent (valued at SAR 315 million).
* Economic Reports Unit