By Assil bin Talib, Sultan Al-Raddad
Riyadh-Mubasher: Saudi Stock Exchange (Tadawul) will likely remain impacted by investor sentiment before the release of government budget for the new fiscal year, experts told Mubasher.
Economist Abdullah Baeshen said the budget will give the market a boost if the government continues focusing on the outstanding infrastructure projects and avoids steep spending decline on emergencies arising from oil prices or the region's unrest.
He forecasted the market to be boosted by oil price recovery and improvement in FY15 corporate financials.
Technical analyst Salem Al-Shwaiman said the local exchange will keep falling over the three sessions preceding the announcement of government budget.
He expected the market to recover after the government releases the budget.
If the index breaks its support of 6,920 points, it will head towards 6,827 and then 6,423, the analyst said, adding that some stocks will likely hit historical lows.
Translated by Abdul Maguid Aboshahla
