Riyadh – Mubasher: The benchmark index of the Saudi Stock Exchange (Tadawul) closed the week ended Thursday, 16 February 2017 in the green above 7,100 points after two straight weekly declines.
The Tadawul All Shares Index (TASI) grew 2.32% or 162.01 points and closed at 7,131.27 points.
Market capitalisation increased by SAR 40.18 billion ($10.71 billion), bringing Tadawul’s market cap to SAR 1.671 trillion ($445.63 billion), compared to last week’s closing at SAR 1.630 trillion ($434.92 billion).
Despite these gains, the Saudi market’s turnover was at a 2017 record low this week after registering SAR 18.02 billion ($4.81 billion) compared to last week’s SAR 19.1 billion ($5.09 billion), which in turn was seen as a seven-week low in 2017.
Traded volume was also down 3.14% this week to 1.04 billion shares traded.
“The Saudi market suffered strong speculation this week, resulting in gains in terms of points,” commented technical analyst Salem Shouiman, adding that he expects a continuation of this scenario next week.
Speaking to Mubasher, the analyst highlighted that this week’s gains coincided with positive news on increasing oil prices, which helped boost global stock markets and overall optimism as well as record new levels and gains.
“Indices are looking good and are expected to surpass new resistance levels,” the analyst added in his market commentary, noting that TASI will see resistance at 7,192, 7,258 points, respectively then peak at 7,292 points in extension,” the analyst told Mubasher.
The benchmark index will see support at 7,096, 7,066 and 6,942 points, he added.
Tadawul’s sector saw a semi-collective rise, with only the pharmaceutical sector falling 5.53% and the real estate investment funds sector remaining stable. Leading the gainers were the public utilities, commercial services and insurance sectors, which added 4.83%, 4.6% and 4.05%, respectively.
Shouiman said he expects next week to see gains on the back of speculation, similar to this week, as there are no anticipated meetings and as global markets continue to rise, which may prompt further gains for the Saudi market.