The Saudi Stock Exchange drops to a second session and ignores the improvement of oil prices

The Saudi stock market for the second consecutive session has almost dropped to the lowest levels since October 2023, despite signs of improved oil prices, amid a fragile morale in light of the continued poor liquidity that has reached the last session since the late 2022 exception. The contemporary trade values ​​improved to four billion dollars yesterday compared to 2.2 billion Riyals yesterday, but it is still without the average of about 5.5 billion Riyals during the second quarter of the year. Despite the improvement of oil prices after the rise in the “OPEC+” production -alliance, the shares of the energy sector led by Aramco, which today lost 0.94% of its value to 23.25 Riyals. Brent -ruol has risen more than 1.5%, more than $ 66 a barrel after the decision. Ahmed Al -Rashid, the first financial analyst in the newspaper “Al -iqtisadiah”, has used expectations that the decline during the last two sessions after the market cohesion increased at the end of last week, indicating a shift in the view of the long -term customers. He said during an intervention with “Al -Sharq”: “Unless the profit of the companies significantly improves returns for equity investors, with long -term expectations improved, the pressure on the market will continue,” and added that investment funds and asset managers could return to the market as the profitability of repetitions ten times. Competition of fixed income instruments The Saudi Stock Exchange has been a greater weakness in liquidity since the beginning of this year, with traders choosing to target their investments on other alternatives, competition with higher returns and lower risks, such as fixed income instruments, according to Ibrahim al -Hindi, a researcher at the “Arab Market Center”. But during an intervention with the “East”, he expected “an improvement in liquidity if the US interest was reduced in the middle of this month, otherwise the direction of the liquidity would continue towards other safe ports such as sukuk and effects.” Investors strongly expect a quarter of a percentage point to reduce the Federal Reserve meeting on September 16 and 17, and they have also increased their bets, with the total number of interests in the current year to reach three, according to future contracts. Al -Hindi added that the factors of market pressure, despite the arrival of stock to attractive price levels, still impede the re -evaluation of opportunities, which suggest that the US economy is specifically around monetary policy and customs fees. Saudi banks are increasingly turning to the debt markets in the light of low liquidity levels, as the value of their exemptions in the debt markets has been $ 13 billion since the beginning of this year. The latest step in this direction comes from the “Al -Rajhi Bank”, which today announced its intention to reach out in dollars. The bank’s shares fell by 0.85% to 92.85 Riyals at the end of today’s session. Analysts believe that the increasing demand from investors on the debt instruments in the light of the high interest rates encourage banks that, according to the Basel 3 rules and the Saudi Central Bank, meet the requirements of capital.