The Saudi Stock Exchange is on its way for a third weekly loss

The Saudi stock market is on their way to record a weekly loss for the third time in a row, although the Dots hemorrhage has delayed over the past two sessions as the market continues to wait for incentives that return it to the positive path. The “Tassi” index ended Wednesday’s trading with a slight decrease of 0.1%, with 11704 points, with a loss of about 1% since the beginning of the week. Yesterday, the decline resulted in the ‘Aqua Power’ share, which lost 3.27% to pay the public facilities index, dropped by 2.6%, while the value of trade also dropped to 5.3 billion riyal, compared to 7.7 billion Riyale in the previous session. Is the slowdown in US inflation to reduce interest? Among the incentives that the market can support is to lower interest rates. Yesterday, US Consumer Price Index data showed that the annual inflation rate in the United States was delayed to 2.8% in February, compared to 3% in January. It comes without the expectation of analysts that inflation would reach 2.9%. Financial markets await such data as a result of their impact on the decision of the US Federal Reserve on interest, amid expectation to reduce the rate of reduction this year. Ahmed Al -Rasheed, the first financial analyst in the newspaper “Al -iqtisadiah”, said that “monetary policy will play a role this year because interest rate accommodation does not allow financial markets to rise a lot, and it increases the costs and financial liabilities on companies as well as the burden on liquidity sizes.” He added that in times of low interest, loan processes to invest in stocks “prevent” the share returns to be higher than fixed income, which is why there was a tendency to borrow for the purpose of investing in the stock market, which printed the trading values ​​to record very high levels during the years when the interest was low. But now the opposite has happened. “The risk of trade war is still the biggest impact on any other factors related to inflation expectations during the upcoming period. The bond market relying on interest rate forecasts did not respond to US inflation data yesterday, as Treasury’s returns initially decreased before they change their direction, which indicates that investors expect a high inflation rate and interest rates for a long time. Stock markets responded positively to this data, as Asian stocks rose today after Wall Street recovered from significant losses that lasted two days. However, compared to the previous year. In the fourth Quarter of Last Year, the group recorded an operational loss of 160.2 Million Riyals, which is the largest since the fourth Quarter of 2021. Muhammad bin frehan, chairman of the board of the directors of the “professional holding”, said that “the operational loses were concentrated in the Food Manufacturing Sector, as well as the Decline in the Value of some Assets and Losses in the Exchange Rate, as well as the Losses of its subsidiary company, autumn. not. “