And 21% of the listed companies, or about 39 companies out of the 183 traded companies “excluding REIT real estate funds,” recorded very high frequencies exceeding 50 times, according to Al Arabiya Net.73 companies are trading at a frequency less than the market, and 10% of companies trade 18 times without a repeat.
The market repeater rise comes at the end of the last trading session, supported by an increase in the market values of the listed companies during the last period, as shares of several levels recorded the highest in more than five years, to coincide with the decline in corporate profits during the past year 2020.
On the other hand, about 31% of companies trade in “negative” repeaters, and about 57 companies are listed in the main market, as they recorded a total net loss for the last four quarters by the end of the fourth quarter of 2020.
The listed companies recorded a decline in their net profits during the past year 2020 by 41%, affected by the results of the second quarter due to the “Corona” pandemic, as the second-quarter profits fell by more than 75%.
Historically, the Saudi stock market has been trading since 2010 at a multiple of 15.3 times the highest average and 12.2 times the lowest annual average until the end of 2017.
But the market multiplier rally continued after this period and broke out of the range, which it was trading at, to end the 2019 market at 19.5 times.
According to the analysis, 12 sectors trade without the market duplicator, while eight other sectors trade higher than the market duplicator, and the insurance and banking sectors are the least repeaters among the sectors, as they trade at 19.9 and 20.2 times, respectively.
Whereas, the “Basic Materials” sector leads the high repeaters at 83 times, under pressure from the high petrochemicals, followed by the “Consumer Services” sector at 39.1 times, and the “Investment and Finance” sector at 35.8 times.
The shares of two companies trade ten times without a duplicate, namely, “Atheeb Telecom” and “Al Bahri”, which are among 73 companies that trade without a market duplicator. It should be noted that the profits of “Atheeb” include profits from a settlement contract for a previous debt.
The highest number of traded companies goes back to SABIC shares more than 4900 times, then construction times more than 780 times, followed by Al-Alamiah Insurance, and more than 700 times.
The dividend multiplier, “price for return”, is the result of dividing the share price by its profitability, and that means the number of years that the shareholder needs to recover what he paid when buying this share. Therefore, the lower the profit multiplier of a company, it is a positive indicator, while the higher it is an indication of inflation. Share price, compared to its earnings.
And “profitability bis” is one of the important financial indicators for evaluating and buying stocks, but there are a number of other important indicators that cannot be dispensed with.