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TASI loses 3% in a week; SAR 20bn liquidity set to be injected

TASI loses 3% in a week; SAR 20bn liquidity set to be injected
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 By Mohammed Abu Meleeh

Riyadh-Mubasher: Tadawul All-Share Index (TASI) dropped as much as 2.93% or 274.47 points in a week, to close at 9,098 points, the lowest weekly close in 15 weeks.

This downtrend coincides with the decline in crude oil prices for the fifth straight week.

The U.S. crude fell around 3% or $1.40 to $47.32 per barrel.

The market capitalisation declined 3.02% or SAR 63 billion to SAR 2.02 trillion, compared with SAR 2.08 trillion a week earlier.

The index has climbed 9.18% or 764.97 points since the beginning of 2015, with the market capitalisation rising 11.6% or SAR 210 billion.

Turnover reached SAR 21.2 billion, the lowest since 3October 2013 when it amounted to SAR 20.8 billion. Trading volume reached 685 million shares, the lowest since August 2011 when it hit 557 million shares.

Mohamed El Maymony, capital market expert, told Mubasher in an exclusive that the market was pressured by some factors, including the holy month of Ramadan and Eid al-Fitr Holiday, in addition to the second-quarter reporting season, during which investors stay away from trading and others withdraw a portion of their liquidity.

He added that the market is awaiting the injection of liquidity worth billions of riyals over the next period, as investors usually inject their dividends or a big portion of them into the market again.

Investors who receive their share in the cash dividends usually await the companies to release their financials in order to restructure their portfolios, the expert said.

A total of 33 listed companies announced cash dividends at a total value of SAR 20.55 billion ($$5.48 billion).

The market is awaiting the injection of liquidity worth more than SAR 20 billion until 2 September.

All sectors declined, led by the agriculture which dropped 5.45%, followed by the retail which was down 4.67%. The energy tailed the list, dipping 0.31%.

 Out of the 165 traded last week, 16 headed north, topped by Tawuniya which climbed 10.13%. Meanwhile, Sipchem was the major disappointment, tumbling 11.53%.

Translated by Abdul Maguid Aboshahla