Al -Iqtisadiah Analysis: Sales pressures are still in “Tassi” .. The risks are not over yet

It is expected that the opportunities for the return of selling pressure will remain in the Saudi stock market, despite the relative cohesion, unless positive data in support of the market will occur, according to the financial analysis unit in Al -Eqtisadiah.

Saudi stocks increased by 0.4% during the past week to close at 11553 points, with the support of most sectors, while trading values ​​fell by 33% to 28.1 billion riyals..

The market witnessed a decrease in the severity of oscillation, which reflects a state of anticipation among dealers, after the sharp fluctuations recorded in the previous week due to the escalation of the trade war. This was clearly reflected in the liquidity activity in terms of trading size and values.

Despite the cohesion of the market, the risks that prompted it to decline have not ended yet, as the United States did not sign a commercial agreement with the countries that imposed additional customs duties, and did not reduce tension with China.

The continued passage of time without clear vision on how America has reached an agreement with 75 countries before the end of the suspension, the uncertainty will remain high among investors, which leads them to demand a higher risk allowance to enhance their investments in stocks, which is a pressure on the market.

The performance of the current market coincides with the season of announcing the financial results for the first quarter, as it is expected that the results that exceed expectations will contribute to stimulating the long -term investors, which would support the market cohesion..

In terms of sectors’ performance, 5 sectors fell against the increase in the rest of the sectors, issued by the “capital goods” sector, with an increase of 6.5%, while the “energy” sector recorded the highest decline rate of 2.1%.

As for the stock level, the shares of 185 companies rose against the decline of 63 and the stability of the rest. The “Red Sea” exports the high shares with a rise of 22%, while Al -Baha’s share came at the forefront of the declining shares, a decrease of about 11%.

Financial Analysis Unit