Saudi stocks continue to advance to point levels achieved a year ago
The general index is expected to cross the 8,800-point barrier amid growing individual participation
Sunday – 2 Rabi ‘Al-Awal 1442 AH – October 18, 2020 AD Issue No. [
The Saudi market index halted last week, rising by 1.6 percent (Reuters)
Riyadh: «Middle East»
The Saudi stock market continued in last week’s trading, the point progression to stand at levels before the beginning of this year 2020 and touching a new point it achieved in August of last year 2019, amid optimism about the macroeconomic conditions and increasing confidence in the financial market as a promising investment opportunity.
The Saudi market index stopped last week, rising by 1.6 percent at 8,553.79 points, up 198 points, amid growing average daily liquidity, while the total trading value of the week settled at 61.2 billion riyals (16.3 billion dollars).
The stock market reacted at the beginning of last week with the disclosure of the largest banking merger in the Middle East and North Africa region, through a binding agreement between National Commercial Bank and Samba Financial Group for the merger expected to be legally completed during the first half of next year 2021.
Shares of the banking sector, which is the most prominent operating sector in the market in terms of affecting the performance of the index, carried the banner of the rise in the general index yesterday, as the share of “Al-Ahli Commercial” rose in the sessions of the past week by a large rate of 8 percent at 41.6 riyals, as well as in the same direction. The share of “Samba Financial Group” went up 7.2 percent to reach 29.5 riyals, amid active trading on the two shares.
For its part, AlAhli Capital – licensed by the Capital Market Authority – believes that the Saudi stock market is likely to grow further, as it considers that the stage is still according to the levels of technical support and resistance analysis at a purchase level, indicating that the stock market index is eligible to continue until the level of 8800 A point after it managed to surpass 8,500 points, according to the technical reading.
On the other hand, Jadwa Investment Company said in a recent report that optimism about the path of recovery of the national economy in Saudi Arabia as well as negotiations on a possible merger in the “basic materials” sector (whose parties were not disclosed) helped the main Saudi market index to rise by 4.5 percent. Percent on a monthly basis during last September.
On the general behavior of the market, Jadwa Investment said that some recent increases in the general index were partly supported by the increase in the participation of individual investors.
Meanwhile, Jadwa Investment believes that the stock market has been boosted recently by continuing purchases through swap agreements, and purchases by qualified foreign investors last month, which led to an increase in incoming flows from the beginning of the year to 16.8 billion riyals ($ 4.4 billion).
On the other hand, the Capital Market Authority stated in the middle of the week about a remarkable success in activating the technical means in the work of the joint-stock companies ‘societies, noting that the number of voters automatically increased in the shareholders’ assemblies of the companies listed in the first half of the current year based on recent data with the holding of ordinary and extraordinary general assemblies Through the means of modern technology remotely, in line with the precautionary measures announced by the state to limit the spread of the new Corona virus.
The data indicated that the first half of this year recorded an increase in the number of automatic voters by 14 per cent compared to the first half of last year, as they represented 99 per cent of the total voters in shareholders ’assemblies during that period compared to one per cent of those in attendance.
The total number of automatic and present voters during this period has increased by 133 percent since March, most of them have the right to participate in the work of shareholders’ assemblies automatically, which led to an increase in the participation of shareholders who voted automatically by 170 percent compared to the first half of 2019.
The data indicated that the number of associations held in the first half of this year increased by 6% compared to the same period last year.
These data and the high rates of participation in the number of voters in shareholders ’assemblies reflect the Authority’s efforts to organize and develop the financial market, and based on its strategy aimed at enhancing confidence in the financial market by raising levels of governance and facilitating shareholders’ exercise of their rights easily and participating effectively in voting on the assembly’s items. Public and private.
It is noteworthy that the automatic voting service for companies listed on the Saudi Stock Exchange has been available without fees to all shareholders since April of 2017 through the (Tadawulati) system. The listed companies announced, according to Arqaam data platform, cash dividends of 13.7 billion riyals ($ 3.6 billion) in the Saudi stock market during the first half of this year.
The Saudi economy
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