The Saudi stock market rose by 1.36% during today’s session, the first session after the Eid Al-Adha holiday.
The main market index “TASI” gained 147 points during morning trading, to rise to 10941 point, and the market’s gains during today’s session reached 1.5%.
Tassi has recorded a strong performance since the beginning of the year so far, as it rose 2,251.99 points, or 25.92 percent.
The “Research and Media” share topped the list of the highest gainers by 8.94%, then Ma’aden by 5.45%, and “Printing and Packaging” by 4.78%.
On the other hand, SABB Takaful came the lowest by 2.21%, then “Al-Ahly Reit 1” by 2.05%, and “Extra” by 1.78%.
Chemanol topped the list of traded shares in terms of volume and value, as it recorded 9.2 million shares, with a value of 274.88 million riyals.
Chemanol’s share rose during trading by 3.45% to 29.95 riyals, supported by the announcement of the company’s profits of 90 million riyals during the first half of 2021, compared to losses of 59.8 million riyals in the same period of the year 2020.
In an interview with Al Arabiya, the chief investment officer of Mada’a Investment, Thamer Al-Saeed, said that the Saudi market is trying to compensate for the past ten-day holiday period.
Al-Saeed added that the week before the Eid holiday, there was a great deal of hesitation in the performance of the index, coinciding with the start of the period of announcing the results of companies’ business and the need for growth to match the growth recorded by the market since March 2020 until now.
The chief investment officer continued: “The market witnessed volatility after crossing the 11,000-point barrier, and whether the market could continue to climb or not.”
He pointed out that the Saudi market is trying to make up for what it missed and is in line with global markets.
Al-Saeed revealed that 16 listed companies announced their financial results with total profits of 1.6 billion riyals for the first half of this year, but the required growth volume that the Saudi stock market needs is between 50% and 70% of the combined profits of the listed companies in order to justify its presence at the level of 11 thousand points and exceeded it.
Al-Saeed stressed that the markets always anticipate recovery, and the Saudi market is interacting with its global counterpart, pointing out that global markets are jumping dramatically and setting new records, and therefore the Saudi market is not an exception in terms of rise, especially with the narrowness of other options by directing criticism for investors.
He pointed out that there are elements that support investors, including cheap cash in terms of cost, and huge liquidity in the markets, in addition to a recovery on the main side in sales and profits.
The chief investment officer said that the market witnessed the influx of a new group of individual investors, adding, “The market is strong this year. There is diversity in the presence of investors between the local market and the American market.”
He stated, “The market is moving more with momentum than with fundamentals because we have already recovered, but the market still has a lot to do to record more recovery.”