• Saudi stocks ... high price levels compared to the returns


    ​Saudi stocks rose for the second session, to close at 8720 points, gaining 40 points by 0.46 percent, while the MT30 index, which measures the performance of the leading stocks, increased three points by 0.29 percent. The rise came amid the rise in most sectors and stocks. The performance improved, driven by the rise of small and medium-sized stocks, where the blue-chips performed less. The increase came at a lower rate than the previous session, with a 5 percent rise in liquidity to reach 11 billion riyals, less than what it traded at the weekend at nearly 14 billion riyals. The speculative tendency is still active and the market is awaiting levels of 8765 points and the ability of the market to achieve new levels for this year. The market’s continuation of achieving new levels enhances risk appetite and attracts more liquidity to the market. The market is still at high price levels, compared to the returns, and it requires companies to double their profitability during the next 12 months to keep profitability multiples at acceptable levels, compared to what the market is accustomed to, and amid the high uncertainty about profitability and the performance of companies with the developments of the pandemic, the wave of rising does not seem sustainable. Which makes the risks high, and the possibility of the market being exposed to possible sharp corrective waves.

    Overall market performance
    The general index opened yesterday's session at 8,682 points, trading between high and low. The lowest point was at 8,648 points, losing 0.37 percent, while the highest point was at 8,730 points, gaining 0.58 percent. At the end of the session, the index closed at 8,720 points, winning 40 points, about 0.46 percent. Liquidity rose 5 percent by about 603 million riyals to reach 11.5 billion riyals, while traded shares increased 5 percent by about 18 million shares to reach 367 million traded shares, and deals rose 9 percent by about 37 thousand deals to reach 447 thousand deals.

    Sectors performance
    Seven sectors retreated against the rise of the rest. The decline was led by the "retail luxury goods" by 0.45 percent, followed by "communications" by 0.38 percent, and the third by "energy" by 0.25 percent. While the rise was led by "long-term commodities" by 4.1 percent, followed by "real estate management and development" by 1.4 percent, and "insurance" by 1.1 percent.
    The highest turnover was "basic materials" by about 21 percent with a value of 2.4 billion riyals, followed by "insurance" 21 percent by about 2.3 billion riyals, and thirdly, "food production" by about 9 percent with a value of 978 million riyals.

    Stock performance
    The rising shares were led by "farm markets" by 10 percent to close at 32.45 riyals, followed by "Zoujaj" by 9.9 percent to close at 28.80 riyals, and by "Al-Aseel" by 9.4 percent, to close at 83.30 riyals. On the other hand, the decline was led by "Baazeem" by 5 percent to close at 95.50 riyals, followed by "Al-Fakharia" by 3.3 percent to close at 97.30 riyals, and by "Al-Watania" by 1.9 percent to close at 47.25 riyals.
    The highest turnover was "Malath Insurance" with a value of 444 million riyals, followed by "Naseej" with a value of 435 million riyals, and "Al-Asmak" with a value of 397 million riyals.

    Economic Reports Unit​

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