*Abdulaziz Al-Faki from Dammam
Financial analysts said to AlEqtisadiah that the dividends announced by many of the listed companies will support the rise of the Saudi stock market index in the short and medium term, with the price of oil holding in the coming period.
They explained that the market has achieved successive gains during the past week, which is indicating that it is poised to break through strong resistance areas to target 8061 levels, if the dividends of companies that did not announce a reward.
Mohammed al-Shimaimry, a financial analyst, said that the market closed at the resistance area 7914 points.
The resistance zone is expected to breach 7931 points due to the incentives available in the market today through semi-annual and annual dividend announcements, which were positive and rewarding for investors.
He expected that the market's support to penetrate new areas of resistance during the week is expected to see the announcement of the company, "SABIC" for distribution, likely to penetrate the 7931.
If breached, the index targets a strong resistance area of 8061 points.
Al-Shammari pointed out that the main reason for the optimistic performance of the market during the current week is that the announcements of distributions were rewarding by the companies that announced as well as expectations for dividends to companies for 2018, which has not yet announced.
He pointed out that the market will move in the direction of upward in the short and medium term after penetrating the region 7924 points.
Moreover, Dr. Khalid Al-Binali, Professor of Finance and Economics at King Fahd University of Petroleum and Minerals, stressed that despite fluctuating performance of the market sometimes, it did not prevent them from walking in the upward trend with the support of most of the leading sectors, which made it profitable and penetrates important areas of resistance.
He explained that the cohesion of oil prices and their rise will have a positive reflection on the market and will enable it to penetrate new areas of resistance, especially as it has been achieving successive gains during the past week.
Al-Binali added that the dividends announced by many listed companies will open the appetite of investors during the next two weeks before the end of the year 2018, with expectations that the US Federal Reserve will lift interest rates.
This will have a positive impact on global markets, including the Saudi market.
Ahmed al-Mulhim, a financial analyst, emphasized that the performance of the index of the Saudi stock market has been positive during the past weeks for most of the leading companies in the market.
He pointed out that the index of the market barrier above 7900 points, which is a clear indication that the market is determined to retain these successive gains that achieved during the previous sessions in order to prepare this week to target new areas above 8000 points.
Al-Mulhim stressed that the market is able to achieve this after the emergence of important catalysts in the forefront of cash dividends, and at a time when investors are watching the distribution of SABIC.
It is expected that it will be rewarding, which will increase the activity of dealers in the market during the next two weeks to benefit from the annual distributions of listed companies.
He said that the improvement in oil prices is an important factor to support the market in the case of cohesion.
He pointed out that the recently announced development projects will be an important factor to move a number of sectors directly related to the market such as the banking sector, construction, construction, retail and cement.
Saudi stocks rose for the third week in a row to close at 7914 points, gaining 65 points, or 0.83 percent.
The market value increased by 17 billion riyals to reach 1.87 trillion riyals, where performance came in line with a previous report of "AlEqtisadiah" that pointed to the continuation of the rise of the market.
