Saudi shares fell at their worst session in a year to lose 148 points, 1.9 percent, and closed at 7802 points. The market value fell by 28 billion riyals to reach 1.8 trillion riyals.
The performance was in line with the previous report, where it was pointed out that the market is suffering from a weakness in the uptrend after being saturated with buying operations.
Duplicates rose and revenue fell, which reduced their attractiveness in the absence of full-term corporate results. It was noted that the support point was at 7820 points and the closure was 18 points away.
The market did not pay attention to the improvement in oil prices, which are settled above $ 70 for Brent crude. It is continuing to decline for the second session in a row. Recent trading showed buyers' activity as their purchases reduced losses by about 18%.
This is a positive sign indicating that there are investment portfolios catching opportunities as the market declines and the decline continues. The basic and technical indicators of the market will improve as they enter a new wave of rise.
The index closed below the 21-day average and this is a negative signal unless the market prepares levels higher than 7820 points.
The market will find an increase in the selling pressure and the retreat unit, which has reached the market to levels of 7463 points in the case of break points, support 7750 and 7680 points.
Sukuk and bond market
The market witnessed the first deals on government bonds, after six bonds with a variable yield (Cyber for three months + five basis points) were traded with a total value of 60 million riyals.
The Saudi government debt market opened at the beginning of the week with the inclusion of Sukuk and bonds worth about 204 billion riyals, the proceeds of the issuance of 45 bonds and instruments.
The recorded issues are divided between government development bonds that worth 77.72 billion riyals and government bonds with a variable yield of 68.21 billion riyals, and government instruments that worth 58.455 billion riyals, and the period of issuance, according to each of the listed instruments. The maturities of government debt instruments are set at between five and seven and ten years.
Overall performance of the market
The general index opened at 7951 points, trading between high and low.
The highest point was at 7980 points, winning 0.37 percent, while the lowest was at 7771 points, losing 2.3 percent. At the end of the session, the general index closed at 7802 points, losing 148 points, 1.9 percent.
The liquidity rose 47 percent by 1.9 billion riyals to reach 5.9 billion riyals, an average of 42 thousand riyals per transaction.
While traded shares increased 68 percent by about 110 million shares to reach 271 million traded shares, with a turnover rate of 0.52 percent.
Transactions rose 32 percent by about 34,000 to reach 140,000 transactions.
All sectors fell, which was led by "long-term goods" at 3.9%, followed by "media" at 3.3%, "food production" at 3.3%, and "trade and professional services" at 0.7%.
The main turnovers were
"Basic Materials" of 33 percent with a value of SR1.9 billion, followed by "management and development of real estate" of 22 percent with a value of 1.3 billion riyals, and then "banks" of 20 percent with a worth of 1.2 billion riyals.
The decline was led by "Alinma Tokyo M" of 7 percent to close at SAR 23.26, followed by "SPM" of 6 percent to close at 8.38 percent, and "Trade Union Cooperative" of 5.9 percent to close at SAR 21.25.
On the other hand, the rise was led by "Saudi Fransi" of 0.7% to close at 29.35 riyals, followed by "Halwani Brs." of 0.5% to close at 55.89 riyals, and "Aseer" of 0.3% to close at 11.42 riyals.
The highest turnovers were "Dar Al-Arkan" with a 20 per cent stake of SR 1.2 billion, followed by "SABIC" with a value of SAR955 million at 16 percent and "Alinma" by 10 percent at a value of SAR 583 million.
* Economic Reports Unit