Sales pressure continues on the Saudi Stock Exchange, amid a trend to foreign markets

The General Index of the Saudi Stock Market is struggling to get out of the downward track it has taken since the beginning of the year, with the continued poor morale in light of indications of a growing orientation of local investors to capital markets abroad, and intense competition of fixed income, amid low oil prices. The “Tassi” index began the Sunday session, by 0.17% lower at 10434 points, affected by almost all leadership shares, while the arrow of “Al -Majidiya” -the latest expatriates on the market -continued the decline as it has lost more than 15% since the past week. The wrong moral Wael Mohamed Ali, director of international mediation at the United Nations Securities, believes that the performance of the Saudi Stock Exchange, the least of its peers in the region since the beginning of the year, has affected the morale of individual investors, especially in light of low oil prices. Brent Ru ended last week, near $ 67 a barrel. But he pointed out that “the market is now trading at attractive levels in some sectors such as banks, which have reached better levels of even their counterparts in the region regarding distributions and results.” Reducing the benefit is an opportunity for apostasy, Ikrami Abdullah, the chief financial analyst in the newspaper “Al -iqtisadiah”, pointed to the intense competition on the market of the low -risk -risk -ricing instruments, which states that the reduction of interest rates, which can be confirmed, to give an opportunity to get apos. The Federal Reserve is generally expected to lower interest rates at its next meeting on September 16 and 17 with at least 25 basis points, but investors around the world will wait to look at the largest statements of his president, Jerome Powell, about the prospects for the economy and the way of monetary policy. Abdullah said during an intervention with ‘Al -Sharq’: ‘Tassi has lost about 13% since the beginning of this year, which is positively reflected on the evaluation and profitability of the market in general.’ The US market is withdrawing liquidity, but competition is not limited to fixed income instruments. At a time when the values ​​and volumes of trading in the Saudi Stock Exchange finish, Saudi investors are becoming increasingly popular with US stock exchanges, a trend that has begun since the beginning of this year, which coincides with the start of the second term of President Donald Trump. Saudi’s investments in the US market multiplied more than three times to reach 193 billion rows by the end of the second quarter of this year, compared to 58.5 billion, just a year ago, according to data collected by “Al Sharq”. US equities reach record levels after falling at the beginning of the second quarter of the year in collaboration with customs duties that Trump announced in most countries in the world, and analysts believe that the lack of a maximum height more saudi investors is from ‘Tadawul’, which puts a maximum end to the 10% rise. Al -Majidiya shares are still declining, “Al -Majidiya” shares have dropped about 6% in morning transactions, with 11.9 rows compared to the price of the 14 Riyals list. Ali said that the arrow is influenced by the general pressure facing the market, note that the shares included in a previous period find a positive interaction between traders, even if their evaluation was high because of the overall upward trend in the market.