Saudi shares fell 22 points to lose 0.3 percent and close at 7506 points, under the pressure from the leading sectors, led by "banks" and "management and development of real estate."
The market entered in a sideways direction with trading in one range for three sessions. A continuation of the index's inability to break through 7550 points will signal the possibility of the index entering a new correction wave that could extend to 7230-7200 points. The levels of 7473 points were considered a support for the index, representing an average of 21 days. Therefore, a break of the support will increase the likelihood of a negative direction for the index.
The market still needs positive catalysts, especially with the decline in liquidity reaching about 2.8 billion riyals, which is the lowest in a month.
Most companies have yet to disclose their financial results due to the length of the permitting period that ends at the end of March, which will then be the anticipation of the results of the first quarter.
Overall market performance
The general index opened at 7528 points, trading between high and low. The highest point was 7549 with a gain of 0.3 percent, while the lowest point was at 7,500 points with 0.37 percent loss. At the end of the session, the index closed at 7506 points, losing 22 points, 0.29 percent. Liquidity declined 9 percent to reach SAR2.8 billion, almost SAR33, 000 per transaction. While shares fell 19 percent by about 27 million shares to reach 120 million traded shares with a turnover rate of 0.23 percent. Transactions fell 2 percent to reach 85,000 transactions.
Sectors performance
Eight sectors rose against the rest. The rise was led by "Utilities" by 0.65%, followed by "food segmentation" by 0.63%, and "Telecommunications" by 0.37%. The decline was led by "management and development of real estate" by 1.3 percent, followed by "transportation" by 0.89 percent, and then "commercial and professional services" by 0.83 percent.
The highest turnover was "Basic Materials" with a 26% increase at a value of SR 724 million, followed by "Banks" by 22% at a value of SR 605 million, and then "Real Estate Management and Development" with 11% at a value of SR 303 million.
Stock performance
The rise was led by "SIECO" that rose 9.96% to close at 244.76 riyals, followed by " Thimar" by 5.79% to close at 31.60 riyals, and " ALDREES" by 3.2% to close at 25.55 riyals. On the other hand, the decline was led by "SACO" that fell 2.9 percent to close at 118.47 riyals, followed by "BATIC" by 2.69 percent to close at 61.22 riyals, and then "SAFCO" by 2.3 percent to close at 65.13 riyals.
"SABIC" had the highest turnover of 317 million riyals at 11 percent, followed by "Alinma" of 317 million riyals at 11 percent, and "Dar al-Arkan" with 8 percent at 230 million riyals.
* Economic Reports Unit
