A have a look at the efficiency of the Saudi market this week (opinions of inner analysts)

Saudi market buying and selling display

The Saudi market index ended final Thursday’s session, rising by 0.1%, to shut at 11,697 factors (+ 14 factors), with a complete worth of trades amounting to about 6.1 billion riyals, and its weekly positive factors reached 114 factors, because it rose by 1% in comparison with the top of the earlier week.

Relating to oil, the usual Brent crude oil decreased final Thursday, by 1.37%, or the equal of 85 cents, whereas it elevated final Friday, by 0.38%, or the equal of 23 cents, to $61.29 per barrel, and its weekly losses reached 2.29%.

Nymex crude fell final Thursday, by 1.39%, or the equal of 81 cents, whereas it rose final Friday, by 0.14%, or the equal of 8 cents, to $57.54 per barrel, and its weekly losses amounted to 2.31%.

Relating to world markets, the Dow Jones Industrial Common fell final Thursday, by 0.65%, or the equal of 301 factors, earlier than rising final Friday, by 0.52%, or the equal of 238 factors, to 46,190 factors, recording weekly positive factors of 1.56%.

Final Thursday, gold contract costs jumped by 2.45%, or the equal of $103, whereas they fell final Friday, by 2.12%, or the equal of $91.3, to $4,213.30 per ounce, however recorded weekly positive factors of 5.32%.

Joseph Dahria, chief market strategist at Tickmill, stated that the Saudi inventory market recorded its fifth consecutive week of positive factors, rising by 0.98%, indicating that investor sentiment stays cautious, which led to reasonable positive factors much like the earlier week.

Dahria defined that whereas the third quarter outcomes announcement season continues, most main firms haven’t but introduced their outcomes, noting that the market’s focus is at the moment on the outcomes of the banking sector, which is prone to have an effect on future market actions.

He added that the robust fundamentals within the non-oil sector point out a optimistic outcomes season, which can assist the market proceed its momentum and compensate for extra of its latest losses.

Joseph Dahria, Chief Market Strategist at Tickmill

Dahria identified that the power sector led the market’s efficiency this week, explaining that the efficiency of Petro Rabigh Firm was exceptional, as its inventory rose by 14.7%, and Aramco additionally contributed to supporting the power of the sector by reaching positive factors of 1.85%.

He said that the third quarter outcomes introduced by Jarir, Superior Petrochemicals and Al Saif Gallery have been usually optimistic, which maintained optimism about the potential of reaching further supportive outcomes from different firms.

Dahria identified that the decline in oil costs represents a possible threat to broader market sentiment, particularly with continued bearish expectations for crude costs, indicating that this will negatively have an effect on the power sector.

He added that buyers will carefully observe third-quarter outcomes bulletins from the remaining power firms to evaluate the extent to which revenue margins are affected by the low value setting.

Dahria stated that the optimistic efficiency of the market is according to the Kingdom’s robust macroeconomic outlook, noting that this pattern is supported by latest updates issued by worldwide monetary establishments, the most recent of which was from the Worldwide Financial Fund this week, which raised its forecast for GDP progress in Saudi Arabia to 4% for the yr 2025.

He defined that this consensus on the power of the Kingdom’s financial foundations, particularly the non-oil sector, reinforces a stable base that may assist the continuation of the market’s optimistic momentum.

Technically, Dahria reported that the TASI index closed at 11,696 factors, persevering with its restoration from final week’s closing stage of 11,583 factors, explaining that if the index continues the shopping for wave, its subsequent goal could signify the 11,750 level stage adopted by the 12,000 level stage, however within the occasion of a return to promoting stress, the assist stage could also be at 11,000 factors.