A slight decrease in the Saudi Stock Exchange amid anticipation of external stimuli

The Saudi stock market has continued to return to the fifth consecutive session, although the losses today delayed a great deal compared to the recent sessions, in light of the anticipation of new incentives that the market brings out of its landmark direction amid anticipation of the movement of interest rates and expectations for the recovery of oil. The “Tassi” index lost 0.06% to close at 10763 points, and the banking sector led by the “Al -Rajhi Bank” share formed the largest pressure on the index, while led the rise of the public utilities sector, led by ‘Aqua Power’, in addition to the telecommunications and basic material sectors. Ibrahim Al -Hindi, the economic researcher at the “Arab market research center”, expected the market to find support at the current stage, because “the decline during the past sessions gave a good discount on prices, in addition to the hope that the performance would be reinforced by the increase in oil production and the expected demand.” Interest rates are a decisive factor on the other hand; Markets still hope to lower interest rates in the United States once or twice during the current year, especially after US data showed the acceleration of the basic inflation rate, which could stimulate the Federal Reserve to take this step next month. Financial analyst Youssef Youssef was of the opinion that reducing interest would be a turning point for liquidity, which in the contemporary session is 4.2 billion Riyals, in the light of the decrease in trade volumes, which indicates the reluctance of clients. He added during an interview with “Al -Sharq”: “There is news about the great possibility of reducing interest, for which the market awaits, and the region of the region in general may be a demand from foreign liquidity after the interest in the light of the exchange rate with the dollar has deviated, which deviates the factor of exchange rate fluctuations.” Majed Al -khaldi, the first financial analyst in the newspaper “Al -iqtisadiah”, is on his part as his side of the opinion that reducing interest will significantly increase the profitability of the listed companies. Al -khaldi added during an intervention with “Al -Sharq” that “the banking sector will benefit specifically from reducing interest, especially stocks such as Al -Rajhi Bank, which is expected to increase the rate of lending as a result of the large amount of its dealings with individuals.” An exaggerated response pointed out that the losses that the market incurred in the last phase were exaggerated, even with the quarterly results of the listed companies that were “not good”. After announcing the quarterly results, the total profits of the companies listed in the Saudi market fell by 8% by excluding the impact of the results of “Aramco” – the largest company listed in terms of market value – and the percentage rises to 16% by calculating the energy giant.