By Mohamed Abu Meleeh
Riyadh – Mubasher: Saudi Stock Exchange (Tadawul) fell last week by 9.93% or 686.5 points to register its biggest weekly losses since 12-16 October, 2014.
The market shed around SAR 156.7 billion ($41.8 billion) of its capitalisation.
The successive crises at the political and economic arenas pushed Tadawul to record lows, said Mohamed Al-Maymouni, technical analyst, advising traders to adopt a ‘wait and see’ approach till having a clearer vision.
The analyst also recommended that traders who are outside the market should wait till seeing an entry signal.
The announcement of companies’ financial results is a key factor that will likely motivate the market, according to the analyst.
The current global crisis is different from that that took place in 2008, as the economic difficulties that rocked several countries, mainly economic slowdown in China, were coupled with political and geopolitical crisis in the Arab region, said Al-Maymouni.
He also said a break below the 6,100 level would drive the index lower towards 5,800 points.
The hotel sector was the biggest drag, with a fall of 15%, followed by petrochemical industries (-13.3%) and retail (-12.29%).
Metlife AIG was the best performing stock (+3.53%), followed by Alsagr Insurance (+3.2%). Meanwhile, Al-Khaleej Training was the biggest drag (-24.2%), followed by Sipchem (-22.4%), Budget (-20.57%), Petrochem (-20.18%) and SIIG (-20.13%).
