By Mohammed Abu Meleeh
Riyadh-Mubasher: Saudi Arabia’s stock market extended on Tuesday its decline for the second straight day, with the liquidity reaching its lowest levels in nearly three months.
The benchmark TASI fell 0.88% or 55.6 points to reach the 6,232.69 points, which is the lowest in eight sessions.
The next target downwards for the index is at 6,220 pointsafter breaking its support level at 6,315, technical analyst Salem Al-Shuwaiman told Mubasher, noting that the gauge is still moving in the third wave formed at the 6,452 level,.
“The third wave will likely end when the index breaks the next target,” Al-Shuwaiman said.
He added that the current profit-taking will push TASI to the fourth wave which is expected to be at the 6,100.
Liquidity fell to its lowest since 25 January, reaching SAR 4.5 billion. A total of266.13 million shares were exchanged; the lowest traded volume since 10 January.
“Some portfolios set aside part of their liquidity for the period after releasing corporate financials,” the analyst said.
He added that the bourse was pressured on Tuesday by falling oil prices in early trade and the approaching of Q1-16 reporting season, especially as some research firms expected listed companies to record lower earnings due to the hike in energy prices.
A total of 12 sectors headed south, led by the hotels and insurance which fell 2.31% and 1.62%, respectively. Meanwhile, three sectors headed north; real estate development (0.59%), transport (0.34%) and multi-investment (0.26%).
Rounding up stocks, losers eclipsed gainers by 114 to 46. Amana was the worst performer of the day, falling 7.39%, while Steel Pipe was the top riser, with a gain of 4.89%.
Translated by Abdul Maguid Aboshahla
