By: Mohamed Abu Meleeh
Riyadh – Mubasher: The Saudi Stock Exchange’s (Tadawul) benchmark index continued its rise on Monday, for the third successive session, backed by banks and petrochemicals, whereas the real estate sector was pressured by the approach of issuing the executive regulations for the white lands tax.
The index added 0.32% or 21.43 points and closed at 6,693.9 points. Total gains in the three sessions reached 1.63% or 107 points.
The index’s gains were accompanied by 10 rising sectors, including banks, petrochemicals, and telecoms, which added 0.86%, 0.25% and 0.08%, respectively, whereas five sectors were down, led by real estate development which lost 1%.
The real estate development sector was expected to decline today, said market analyst Ahmed El Malky, noting that the sector closed at 6,139 points today but is expected to fall to January’s bottom level.
The real estate development sector is the third weightiest sector on Tadawul, the analyst noted, adding that the upcoming implementation of the white land tax is expected to continue pressuring the sector.
It is expected that the draft for the executive regulations of the white lands tax will be presented before the Cabinet in the coming four weeks for approval and to begin implementation, local media reported.
Commenting on SABIC’s performance, El Malky said that the level of SAR 85 acts as strong resistance for the stock, which is likely to see a correction at the level of SAR 77.
Turnover fell to SAR 5.59 billion on Monday from SAR 6.04 billion on Sunday, while traded volume retreated to 308.5 million shares traded compared to 318.7 million shares yesterday.
A total of 115 shares ended the session at a rise, led by Al Ahlia Cooperative Insurance and Amana which surged 9.87% and 9.85%, respectively.
On the other hand, 48 stocks ended in the red, led by Saudi Fisheries, Al Jouf Agricultural Development, and National Metal Manufacturing and Casting Co., which lost 3.29%, 2.87% and 2.46%, respectively.
Translated by: Nada Adel Sobhi
