The Saudi Stock Index (TASI) continued its five-week streak of gains as traders agreed to form buying positions supported by expectations of strong quarterly results for the banking sector, and increased bets on a new cut in interest rates, in addition to hopes of easing trade tensions between the United States and China. The index rose at the start of trading today, Sunday, to once again exceed the level of 11,700 points, driven by the rise of leading stocks, especially “Al Rajhi Bank”, “Nasionale Bank” and “ACWA Power”, while “Aramco” shares were exposed to some profit-taking activities after posting strong gains last week. Form positions before the momentum of results. Youssef Youssef, director of financial data development at the “Arqaam” portal, expects the index to continue rising and record 12 thousand points during the next few sessions, especially thanks to expectations that banks will start announcing their quarterly results by the end of this week or the beginning of next week. During an intervention with Al-Sharq, Youssef said: “The monthly statistics issued by the Central Bank make expectations for the banking sector highly accurate. These statistics showed an increase in profits during the first two months of the third quarter by 11% year-on-year.” He pointed out that liquidity movements in the market reflect the concentration of investors in the basic materials, banking and energy sectors ahead of the momentum of the results. External support and attractive opportunities For his part, financial analyst Asim Mansour pointed to external support factors for the market, including the upcoming meeting between the US and Chinese presidents, which could testify to an agreement to ease trade tensions, in addition to growing expectations of another cut in interest rates this month. He explained that the Saudi market includes good investment opportunities, especially during periods of profit-making, especially in the banking sector, in addition to the luxury goods sector, which is characterized by high profit margins. He added during an intervention with Al-Sharq: “There are some other opportunities, such as ACWA Power shares in light of the signing of several agreements and expansion outside the Kingdom, and Petro Rabigh after increasing Aramco’s share.” But he pointed to some expected risks, such as the possibility of easing sanctions against Russia if a solution to the Ukrainian crisis is reached, which could lead to a continued drop in oil prices, perhaps to $50 a barrel, affecting market gains.
Saudi market momentum continues pending banking sector results
