In a recent report, Al-Rajhi Capital has stated that Q3 is likely to be a mixed quarter for the Saudi market.
The heavyweight Petrochemical sector is expected to be dragged lower by a number of shutdowns and lower product prices, the research firm added.
On the other hand, the Retail and Food sectors will benefit due to the festive Ramadan period as well as new product launches.
The Cement sector, which had slowed down sharply since the second half of last year, is also showing signs of recovery, Al-Rajhi stated.
The TASI has rallied a strong 13.2% QTD although the 10.4% run-up has come since the announcement of the liberalization of the Saudi stock market.
With the market sentiment already being factored in the recent rally, TASI’s performance over the next couple of months will largely depend on the Q3 earnings.
The report issuer expects TASI to remain range-bound over the near term in the absence of any major miss in earnings while external factors are more likely to have a bigger impact on TASI performance.
The heavyweight Petrochemical sector is expected to be dragged lower by a number of shutdowns and lower product prices, the research firm added.
On the other hand, the Retail and Food sectors will benefit due to the festive Ramadan period as well as new product launches.
The Cement sector, which had slowed down sharply since the second half of last year, is also showing signs of recovery, Al-Rajhi stated.
The TASI has rallied a strong 13.2% QTD although the 10.4% run-up has come since the announcement of the liberalization of the Saudi stock market.
With the market sentiment already being factored in the recent rally, TASI’s performance over the next couple of months will largely depend on the Q3 earnings.
The report issuer expects TASI to remain range-bound over the near term in the absence of any major miss in earnings while external factors are more likely to have a bigger impact on TASI performance.
Source:
Mubasher
