• The stock market is observing oil trends as the mid term results close


    Analysts in the Saudi stock market were likely to continue the downward trend in the case of a break of 6750 points and resistance at 6877 points, with the rise in selling against buying in light of the price of a number of leading stocks, as prices rose with the support of oil prices.
    Analysts said that the market is in a state of anticipation of oil prices and their reflection on stock prices, while postponing some of the purchase decisions until the emergence of semi annual financial results of listed companies.
    "In the last week of trading in the stock market and before Eid Al Fitr holiday, traders are watching oil prices and their impact on stock prices, especially for companies operating in the petrochemical sector to determine their options between buying and selling according to the direction of stock prices, Adding that the retract in oil will has a negative impact on the exit of liquidity from petrochemical stocks.
    He pointed that oil prices have a significant impact on the determination of stock prices and thus on the decisions of traders in the market and control the decisions of sale and purchase indirectly and raise them and adjust them as reflected on prices.
    He said that raising the interest rate and the rise of the US dollar pressure on the general index and the market in general is sure to continue to affect until next week, pointing out that the general index peaked at 6877 points a while ago and continued in the area of ​​confusion and weekly volatility with a short upward wave on the daily movement.
    Hossam Al Ghamdi, a stock market analyst, said: "Petrochemical companies and banks have affected the general index and pressured it by the impact of falling oil prices and higher interest rates on the dollar, which directly reflected the price of the US dollar, which automatically raises oil prices.
    He pointed that traders in the stock market took a similar decision as a collective disorganized selling and taking advantage of the stock prices that rose during the end of last week, explaining that the sale was the stocks of companies operating in the petrochemical sector, as well as in banks, which created a state of waiting is the change, which caused a change in oil prices and encouraged them to sell and take advantage of the price difference, saying: The situation will wait for the traders during the next week before the decision to buy and sell, which will be based on stock prices.
    Muhammed Al Omran, stock market analyst, said: "The stock market in the middle of the year is experiencing a period of calm because of the high oil prices and coinciding with the holy month of Ramadan, noting that major investors preferred to enter the market after the holiday of Eid Al Fitr, The interest rate of the US dollar is 0.25 percent and domestic banks are on the rise, explaining that the Federal Reserve raised the interest rate 25 basis points to the range between 1.00 and 1.25 percent after its last meeting had a direct impact on the market.
    He pointed that several factors affected the volume of liquidity, including lack of appetite for large investors and the volume of trading during the past three weeks, where the value traded last week, 10.69 billion riyals, down by about 30.45 percent, said liquidity will return after investors return to trading.
    Al Omran suggested that the market will return to the trend at the weekly movement level if it breaks 6750 points and 6633 points. The market has generally tested many negative areas for a very long time and added: If the index continues and does not reach a real bottom or True support that will make it continue this way in the month of Shawwal.
    He pointed out that the stock prices were not attracted by the market makers and did not motivate them to buy the market to the areas of support to drop the index and then remain negative because of the fear of manufacturers and reluctance to enter during the current period, saying: The market tends to test a lot since the beginning of the year and this is a negative indicator, real support is not being very much because the frequent trading indicates that the region is not very tempting to the makers of the market in terms of prices, so these speculators are likely to be broken and starts to speed the retracting.
    He pointed that the most important leading stocks are rising prices, including SABIC, which is heading to its new target at the level of 96 riyals if the oil prices resisted and did not fall, which is unlikely in the coming days, explaining that the impact of the retract of Brent crude on the prices of some companies because of the impact of falling Brent crude, indicating that the general index targets support level 6750 points and the most important resistance level of 6877 points.

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