By Rami Sameeh
Saudi Arabia – Mubasher Exclusive: Mohammed Al-Aasar, head of Technical Research Dep. at NBK Capital, told Mubasher that the Saudi shares were hurt most by falling oil prices over the past sessions.
Oil prices declined on Wednesday below $60 per barrel, its lowest in five and a half years.
Major oil producers said they will continue production despite oversupply and weak demand from Russia and Europe.
Al-Aasar added that TASI is likely to stage a comeback after selling powers pushed the Saudi benchmark to lower levels near 7300 points after having broken the key support at 9300 pts.
TASI returned to the green territory on Wednesday, reversing an eight-session losing run during which it shed 1627.33 points, or 18.17%.
The index rose 4.21% or 308.6 points (18.9% of the losses seen in the eight-day fall) to close at 7638.9 points. It was buoyed by the reassuring statements made by Finance Minister Ibrahim Alassaf.
Alassaf said on Wednesday that Saudi Arabia will continue spending on development projects and social benefits in its 2015 budget despite "challenging" global economic conditions.
Six GCC markets incurred market losses of nearly $52 billion on Tuesday, Saudi Arabia recorded the biggest loss of around $32 billion, then the UAE markets ($11.4 billion) and Qatar ($6 billion), according to Mubasher statistics.
Al-Aasar advised medium-term investors to buy at current levels to make use of the expected rebound. He also forecasted the index to rally in the next period, targeting 9300 pts.

Translated by Abdul Maguid Aboshahla

Photo Credit: Mubasher