The Saudi Stock Exchange Index consolidated at the beginning of the trading, with the slowdown in the flurry of sale in Asian markets in general, after Donald Trump relieved his eschalatory tone to China, which strengthened the appetite for risks, while positive expectations for the results of local companies continue. The Tasi index opened today, Monday, with an increase of about 0.5% at 11,555 points, and he compensates for most losses incurred over the past session, supported by profits achieved by the shares of ‘Al Rajhi Bank’ and ‘Aramco’, the two largest shares on the index, and ‘ACWA Power’ and ‘Petro Rabigh’. Improvement for Asian markets in Asian trade rose the US stock index futures this morning and oil jumped while Chinese shares hampered their losses, after Trump expressed openness yesterday to reach an agreement, and he had a ‘possible way out’ to his Chinese counterpart, while making a swept threat that a comprehensive trade war would damage China. The markets suffered major losses at the end of last week when the US president announced the imposition of additional 100% rates on Chinese goods, in response to Beijing’s announcement of new export restrictions on rare earth. Hisham Abu Jamea, a consultant at Naif Al Rajhi Investment, is of the opinion that Trump’s statements, which he described as “reconciliation” in the direction of China yesterday, calmed down the global sentiment, especially concerns about economic growth in the second largest economy in the world, which directly affects sectors such as petrochemicals. Additional support from the end of the Gaza War. This morning, Trump started a tour of the Middle East in an attempt to consolidate the ceasefire agreement between Israel and Hamas and announce the end of the Gaza War, which lasted two years. Trump bets on his personal influence and direct guarantees, in addition to the US military presence in the region, to ensure that the parties fulfill the terms of the agreement while visiting Israel and Egypt to confirm the US role in planning the next phase after the war. Mary Salem, a financial analyst at Al-Sharq, says the decline in geopolitical tensions in the region will improve the morale of investors, especially foreigners, in the Saudi Stock Exchange. The results support Jarir shares. In terms of quarterly results, Jarir Marketing Company announced that its net profits grew by 5.4% during the third quarter of the year to 308.2 million Riyals, which was slightly below expectation. The company has indicated a relative decline in profitability margins for some departments. During an interview with Al-Sharq, Abu Jamea said: “The quarterly profits of Jarir are the highest in its history. The results of the four companies announced so far indicate very reasonable profit shifts, and we expect the same as the rest of the results, especially the banking sector.”
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