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The Saudi stock index ended Wednesday’s session slightly lower, ending a strong rally that has lasted 9 consecutive sessions in the past.
However, the index remains above 9,000 points, the highest level since mid-2019.
The index ended the session down 0.19%, losing 17.65 points and closing at 9,084.31 points, with trades exceeding a total of 14.23 billion riyals.
In an interview with Al Arabiya, the founder and CEO of Quansia Capital, Majid Kabbara, said that several factors “have changed our outlook and made us more positive towards the Saudi financial market, following the successful distribution of Corona vaccines, the gradual return to normal life and its impact on the economy. “
He added that the caveats were in the previous view, expressing the real economy’s lack of correlation with the stock market, but at the end of last year, with the success of fighting the pandemic, the outlook has become more positive.
And he estimated that the blue wave, with the advent of Democrats on the American political scene, is read by the markets that it will express more spending which will be reflected in the growth of the American economy and therefore of the economies of the countries. of the world.
He also noted positive effects that come from the fact that “Corona mutations spread faster, but they are not more dangerous compared to the number of deaths in the world”.
He drew attention to the need to be cautious in financial markets, and for the Saudi market, the outlook is positive and valuations are high in the basic materials sector, with the exception of cement plants.
And he called for a careful analysis of the financial situation of companies and the prospects for the future, and asked whether the management of companies could achieve the plans and goals they set for themselves.
He expressed his belief that valuations are still high for “petrochemicals” and “minerals” in the Saudi market, despite improving earnings.
Regarding banks, he said it would be better to look at the allocations of each bank depending on the nature of its work, the distribution of its funding portfolio and the quality of its loans.
The number of shares traded reached over 485 million shares, shared by more than 570,000 transactions, in which the shares of 86 companies saw an increase in value, while the shares of 101 companies closed lower. .
Shares of Aslak, Musk, Al Hokair Group, Saudi Cables and Atheeb Telecom were the biggest gainers, while stocks of Arab Sea, Fukhariya, Refineries, Jazadco and Azim were the weakest in terms of trading, the increase and decrease rates varying between 10.00% and 10.00%.
While shares of Dar Al-Arkan, Saptco, Saudi Cables, Kimanol and GACO were the most active in terms of quantity, as were shares of Saudi Cable Companies, Arabian Sea, Refineries, Tabuk Agricultural and JACO, the most active evaluate it.
The Saudi Parallel Stock Index (Nomu) also closed today, up 4.8%, to gain 1277.81 points and close at 27866.66 points, with trades amounting to 112 million riyals, and the number of shares traded reached 1.8 million shares shared by 1857 transactions.
Today, Wednesday, the Growth Index witnessed the inclusion and start of trading of Watani Iron and Steel Company shares as direct listing with trading code 9513 and international code SA158GIKKKH8, provided that the daily price volatility limits are +/- 30% with the application of fixed price volatility limits at +/- 10%.
The Saudi market has been supported by the rise in oil prices in recent sessions, while the Gulf markets have suffered slight drops and drops in indices.
The head of asset management at Daman Investment said the rise in Saudi stocks is benefiting from oil prices, supported by optimism at the speed of the economy opening up.
He added to Al-Arabiya that the performance of Saudi stocks has been supported by the banking sector linked to real estate finance and the construction sector, which are experiencing a sharp increase thanks to government support.
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