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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.
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.