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Tadawul sees marginal gains Wednesday

Tadawul sees marginal gains Wednesday
(Photo Credit: Arabianeye-Reuters)

By: Thabet Shehata

Riyadh – Mubasher: The Saudi Stock Exchange (Tadawul) closed Wednesday at a slight rise, resuming gains after two straight declines. The market’s leading sectors saw mixed performances amid a continued drop in liquidity.

The Tadawul All Shares Index (TASI) ended the session up 0.07% or 5 points to close at 7,062.85 points.

Market analyst Ali Al-Zahrany commented that Tadawul has been moving between resistance at 7,200 and support at 6,800, which represents the minimum level for the sideways channel.

The level of 7,000 points remains the psychological level on which the benchmark index will be relying on for support in the coming period, he told Mubasher.

Turnover was up slighty to SAR 3.77 billion ($1.01 billion) on Wednesday from SAR 3.58 billion ($955 million) on Tuesday, while traded volume saw a marginal decline to 213 million shares traded versus 214.3 million in the previous session.

The Saudi market is awaiting several important decisions in the coming period, particularly as the grace period for reporting financials by loss-making companies nears its end. After that, these companies will be required to fix their financial position or announce bankruptcy, the analyst told Mubasher.

Tadawul is lacking in internal market-boosting catalysts, Al-Zahrany added, excluding some companies such as Tasnee.

The capital goods sector led gainers on Wednesday, rising 5.47% after Tasnee surged 9.96%, leading the market’s advancing shares.

The basic industries sector added 0.76% after SABIC and SAFCO gained 0.96% to SAR 98 and SAR 72.75, respectively.

The banking sector edged up 0.04% after Al-Rajhi grew 0.23% to SAR 65, whereas National Commercial Bank (NCB) fell 0.24% to end at SAR 41.70.

Regarding the launch of the Saudi parallel market and its impact on the main market, Al-Zahrany told Mubasher that the step will negatively affect Saudi liquidity as it is expected that several investment funds will invest in the parallel market.

 

Translated by: Nada Adel Sobhi