By: Thabet Shehata
Riyadh – Mubasher: The benchmark index of the Saudi Stock Exchange (Tadawul) ended Wednesday's session in the green, backed by its leading sectors amid improved liquidity levels compared to previous sessions.
The Tadawul All Shares Index (TASI) gained 0.89% or 62.77 points and closed at 7,099.13 points.
Financial consultant Mohamed Al Maymoony commented that the market is likely to see a rising trend on the short-term backed by a number of positive factors, which boost investor confidence and support liquidity.
Moody’s most recent report in which the ratings agency changed its outlook for the Kingdom to positive from negative is among the top factors helping the market hold above 7,000 points recently, the analyst told Mubasher via phone.
Turnover increased to SAR 3.6 billion ($964 million) on Wednesday, from SAR 2.58 billion ($686.7 million) on Tuesday. Similarly, traded volume rose to 170.3 million shares traded against 110 million shares in the previous session.
Regarding the rise in turnover, Al Maymoony told Mubasher that investors have begun cashing their dividend payouts, which in turn boosts market liquidity and attracts more of it.
As for companies’ positive first-quarter financials, the analyst noted that these results were also a market booster, particularly amid expectations for further positive results on the back of improved economic conditions and higher oil prices both year-on-year and quarter-on-quarter.
The telecom sector led risers on Wednesday, adding 3.88% after Zain surged 9.84% to SAR 10.05, after reporting turning to profits in Q1-17. The banking sector followed with a 1.24% gain, backed by Al Rajhi and NCB, which grew 1.28% and 2.12% to SAR 65.75 and SAR 39, respectively.
The basic materials sector increased 0.41% after SAFCO levelled up 0.93% to SAR 69.50, whereas SABIC trimmed gains, falling 1.33% to SAR 100.
Tadawul is expected to continue its rising trend in the coming period as oil prices hold above the $50 per barrel mark and companies continue to post positive results, amid geopolitical stability, Al Maymoony told Mubasher.
He added that TASI is likely to continue moving towards 7,100 and 7,200 points as many companies trade below their fair values, making them attractive for buying.
Translated by: Nada Adel Sobhi
