Saudi stock market rebounds above the 11,300 points level

The Saudi stock market rebounded to climb today, Monday, after plunging by more than 4% in yesterday’s session, the first of the week

At 11361 points, the major market index “TASI” closed up 0.55 percent or 62.3 points.

Trading on 155.6 million shares resulted in a total value of 5.2 billion riyals, with 133 equities rising in price compared to 75 falling in price.

The rise was led by “Enaya” share by 10% for 18.92 riyals, followed by “Amanah Insurance” share by 9.93% at 15.06 riyals.

The “Arab Sea” share recorded the highest decline, which amounted to 9.99% for 79.3 riyals, followed by the share of “Exports” by 9.96% at 46.1 riyals.

Al-Rajhi Bank’s share topped the trading volumes by about 498.7 million riyals, while Dar Al-Arkan shares led the trading volumes by about 21.7 million shares.

Abdullah Al-Hamid, head of the advisory at GIB Capital, said that the Saudi stock market is not isolated from what is happening in global markets.

In an interview with “Al-Arabiya,” Al-Hamid explained that stock markets have an inverse relationship with interest rates, saying that expectations predict a rise in interest, which harms the markets as a whole.

According to Al-Hamid, what is going on in the Saudi stock market is accompanied by a steep drop because a large portion of the market’s dealers are people.

He believes that the view of individuals is very limited, and their actions are more based on emotions, regardless of the basics.

He said that while the stock market has dropped 20% since the beginning of the year, the profits of the firm’s second quarter, which will begin to be disclosed in 10 days, might be one of the best since before Corona.

According to Al-Hamid, the Saudi market will witness a new high in bank earnings, maybe the greatest in history, as well as favorable predictions for petrochemical profits.

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