Saudi Stocks: Predictions to Overcome Level of 8000 Points
The Saudi market starts the new week’s trading amid traders’ optimism that the index will be capable of reversing its negative track recorded over the past four weeks and exceed the levels of 8000 points.
The drop in the stock was accompanied by profit-taking operations for many listed companies which achieved noticeable gains in January.
Traders expect more than 155 companies to announce their financial results for the last quarter of 2019 in the coming weeks.
During the first nine months of 2019, net profits of the Saudi companies listed in the Saudi stock market, excluding Saudi Aramco, amounted to about $17.2 billion.
The results of the final quarter of 2019 are expected to achieve unprecedented results in the Saudi stock market, driven by the profits that Saudi Aramco is expected to announce.
Oil prices recorded a 7 percent increase compared to the previous week’s closing, with Brent oil jumping above $57 a barrel and crude oil settling above $52.
On Friday, oil prices recorded their highest levels in about two weeks ago.
Saudi market traders hope that this positive performance will be reflected in the Saudi stock market this week, at a time when most listed companies are still preparing to announce their financial results in the next few weeks.
The Saudi index ended the trading of the last week down by 2.2 percent, closing at 7874 points, compared to the previous week’s closing at 8053 points, continuing its decline for the fourth week in a row.
All the listed sectors recorded a decline during the last week's transactions, except for the media and entertainment sector which rose 2.1 percent, while the shares of 38 companies listed closed on code ‘green’.