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TASI down Wednesday, fluctuations expected

TASI down Wednesday, fluctuations expected
The main index lost 0.43% and closed at 7,124.1 points - (Photo Credit: Arabianeye-Reuters)

By: Thabet Shehata

Riyadh - Mubasher: The Saudi Stock Exchange (Tadawul) ended Wednesday’s trading session in the red zone, after returning to gains yesterday, the main index declined on the back of petrochem and banks sectors.

Tadawul All Shares Index (TASI) lost 0.43% or 31.1 points and closed at the level of 7,124.1 points, meaning that it is still maintaining its levels above 7,100 points despite an instable performance.

Analyst Khalid Al-Modyan of Riyad Capital, said that the Saudi market saw a severe fluctuation during Wednesday’s session after a series of perfect performances in previous sessions that made the market see some new peaks in 2016.

Al-Modyan also told Mubasher that fluctuation is expected to continue in the upcoming period between the resistance level of 7,220 points and the support level of 7,024 points, with growing anticipation for the announcement of the Kingdom’s public budget, and the finical results of Q4-16.

Meanwhile, traded values went up to SAR 7.26 billion compared to around SAR 6.82 billion on Tuesday’s session.

On the other hand, traded volumes slightly decreased to 483.6 million shares from 490.5 million shares yesterday.

Riyad Capital’s analyst Khalid Al-Modyan said that breaking current support levels would increase the probability of reaching lower points due to profit making activity after the huge gains that Tadawul saw recently.

As for the sectors performance, nine declined today, led by energy which lost 2.46% as Saudi Electricity went down by 2.73% and closed at SAR 19.25.

The petrochemical sector came in second and lost 1.13%, as SABIC declined by the same percentage and closed at the level of SAR 95.75, while SAFCO shed 1.75% to SAR 77.5.

Similarly, the banks sector fell by 0.45%, as Al-Rajhi and Al-Ahli decreased 0.85% and 0.83% and closed at SAR 63 and SAR 41.8 respectively.

On the other hand, six sector closed Wednesday in green, as multi-investment grew 1.54%, after all of its stocks went up, led by Kingdom holding which increased by 2.33% and closed at SAR 12.4.

United Cooperative Assurance (UCA) was the session’s biggest loser and dropped 4% to SAR 12.6, after the company received a letter from the Saudi Arabian Monetary Agency (SAMA) banning the company from issuing or renewing motor insurance policies, effective from 7 December.

Extra led today’s gainers and surged 9.89% to SAR 27, followed by Saudi Fisheries (Al Asmak) which jumped 9.72% to the level of SAR 13.55.

Dar Al Arkan was the most active in traded values and volumes, with 121.15 million shares and a total turnover of SAR 750.5 million, it rose 0.16% and closed at SAR 6.20.

Translated by: Moslem Ali