By: Thabet Shehata
Riyadh – Mubasher: The Saudi Stock Exchange’s (Tadawul) ended Wednesday’s session in the red for the second session in a row, following a semi-collective decline of its sectors, amid high turnover compared to Tuesday’s session.
The Tadawul All Shares Index (TASI) shed 1.01% or 71.2 points and closed at 6,967.40 points, its lowest level in 13 sessions. The index has thus fallen below the 7,000-point level.
Commenting on the market’s performance on Wednesday, financial consultant Ali Al-Jaafary noted that TASI has continued to see a sideways performance in past few days, while fluctuating between the levels of 7,300 and 6,750 points.
This performance is due to the absence of strong market-moving news, he told Mubasher, adding that traders are awaiting news regarding the anticipated increase in energy prices, which will likely have a negative impact on the market.
Turnover rose to SAR 4.4 billion ($1.17 billion) on Wednesday from SAR 4.02 billion ($1.07 billion) on Tuesday, while turnover increased to 252.24 million shares traded, compared to yesterday’s 224 million shares.
Liquidity remains within normal levels, the analyst told Mubasher, noting that slight increases in liquidity aren’t worrying to investors.
Sector-wise, the transport sector led 17 losers, falling 2.56%, after all stocks in the sector declined, led by Land Services which lost 2.86% to SAR 52.25.
The basic commodities sector shed 1.35%, after SABIC and SAFCO retreated 1.15% and 2.08% to SAR 95.25 and SAR 70.50, respectively.
Regarding, Aramco’s highly-anticipating initial public offering (IPO) and its impact on the market, Al-Jaafary noted that the IPO isn’t currently affecting the market at present as the date is sometime in 2018.
Any developments are mere speculations and preparations for the IPO with no final steps, the analyst told Mubasher.
The banking sector slipped 0.73% after all of its stock ended down, after AlRajhi and National Commercial Bank (NCB) lost 0.08% and 0.49%, respectively, whereas Alinma Bank edged up 0.07%.
The telecom sector sagged 1.08% after STC dropped 1.14% to SAR 65.25, followed by Mobile and Zain, which fell 0.83% and 0.57%, respectively.
On a positive note, three sectors closed Wednesday in the green, led by public utilities with 1.3%, backed by Saudi Electricity Co. (SEC), which gained 1.13% to SAR 23.3.
The Saudi market is likely to extend its sideways performance in the coming few sessions, until a clear market trend emerges, Ali Al-Jaafary told Mubasher, noting that the market will either break below 6,750 or above 7,300.
Translated by: Nada Adel Sobhi
