The market did not reach the bottom .. We must follow the Corona Index



Mazen Al-Sudairy, head of Al-Rajhi Capital’s research division, said that the Saudi SAMA’s measures to contain the consequences of “corona” on the most prominent sectors in Saudi Arabia and help companies maintain jobs in these conditions and provide loans to companies to support jobs and the labor market is the right decision . “We are living in a depressive state, the causes of which are not economic, but natural, coming from the epidemic of the Corona outbreak. Therefore, in such a circumstance, stopping activities is considered to lead to disruption, such as the aviation, services and entertainment sector, which is concerned with stopping, and that is why “Sama” directed to support and support the unemployed.

Al-Sudairy added, “In non-economic circumstances, in the event of war, countries will intervene. There is no doubt that the debt ratio will rise in the world’s economies, not only in Saudi Arabia. “Sama’s” position is to preserve small and medium enterprises, with expectations that a return to normal activity is not possible, despite the President’s reassuring statements.

“There is a study indicating that if society does not control 80%, there will be no use for the ban, and therefore must be tightened urgently. The measures taken by central banks around the world reduce the damage but do not cure it. The world is monitoring what can be developed from vaccines and medicines. High-risk assets have not It reaches the lowest levels and the world expects oil prices to fall. Oil is not only a source of income for the Kingdom but is a global financial industry and 8% of the sukuk in the United States is linked to oil. Therefore, these measures come to mitigate the effects and banks can maintain their strength. What must be followed now is an indicator Corona and safety a People. Because in the event of an increase. ”

A report by “JP Morgan” revealed that most of the high-risk assets reached the lowest levels that they might witness during the recession that is sweeping the world’s economies, excluding oil and some emerging market currencies.

GB Morgan relied on three evidence in his expectations, namely that the prices of high-risk assets such as stocks reached levels previously experienced during recessions, in addition to starting investors to change their positions and launching unusual economic stimulus plans.

The US bank expected the volatility of high-risk markets to continue as long as Corona caused uncertainty over the duration of the recession caused by the virus.

GB Morgan expected high-risk assets to trade at levels above current levels in the second quarter of this year.


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