13/03/2014
Profits within minimum repeaters globally
Confidence back stimulates the entry of more individuals to the stock market
More than eight years ago on the anniversary of the collapse of the Saudi stock market on 26 February 2006, during which more than 4.2 million investors the vagaries of storm, has been talked about a lot and the successive developments of analysis according to many variables affecting the financial market in the Middle East. in light of those certainly long period that greatly affected financial market during the great collapse of the end of the first quarter of 2006, as a result of the rapid shock by the time the ' CMA Foundation SAMA ', soon has experienced the second shock causing her collapse II early in 2008, but this time SAMA has played the largest role in the overthrow of the financial market gains throughout the second half of 2007, following the radical decisions on domestic liquidity via repo rates, in addition to lifting rates regular reserves on demand deposits and fixed, All with the goal of reducing inflation to frayed by his thorns unprecedented in the local economy. Then came the third strike was a violent, comparable to the violence of the first strike, but this time it came from abroad, as a result of the global financial crisis ignited during the last quarter of 2008. domestic financial market has suffered greatly over the period of these negative developments, turning a double impact on investor confidence in the market, pulled out the bitter facts on the withdrawal of tens of thousands of them from the market, to the tens of billions of riyals to the real estate market, to revive the waves of speculation on land trading, leaving its Negative on the national economy and individual income, and part of the fugitive out liquidity, despite the negative this off, but it applies to say toddler ' every cloud has a silver lining, so they would follow the liquidity leaked some frantic speculation in the real estate market, the national economy has witnessed the heaviest waves in the real estate market represented at altitudes greater than informed.
What's going on in the stock market now? Answering this question requires a detailed independent study, but this does not prevent the most that can be said in this report urgently. We know that our economy is suffering a narrow investment channels, despite the unlimited number of viable investment opportunities, and this is interpreted as relative to the core features of the local economy, and you can tell they're problems or challenges, rather than just the attributes only! First: the face of domestic investment environment, and specifically the issues of establishing a business and industrial and service, many of the constraints that no mitigation of accomplishment or facilitation, still facing these projects especially small and medium ones lots of challenges, perhaps the most important aspect, which is the most important element. For larger giant installations referring to its role in all inhibitor by economic, financial and trade policies and the labor market, in addition to disharmony between them,, Who in turn discouraging effects on the local investment environment to the national capital, not here compared to foreign investment, which poured into the vaults even exceeded 800 billion by the end of last year, the fact that those investments from abroad in support of energy sources positive factor for her than any other negative factors, not what I found from the exceptional support provided by public authority for foreign investment, payment in time to cancel up to compete with the national capital and What is the process after I discovered the magnitude of the grave mistakes. II: in front, longer in front of the national capital only two options, either go outside or into the speculative fever ' financial market, real estate market ' which is not an economic return at all, but on the contrary may see cause the most damage to the economy and society alike, as we have seen in the bubble of stock market 2003-2006, or what we are witnessing at the moment of the bubble the most damage in the real estate market.Before serious moves announced by the Government since the mid-2011, began to emerge more strongly after the middle of last year, which aimed to address the shortcomings and deficiencies of the real estate market, and their negative effects and painful on per capita income, speculative liquidity began to gradually withdraw from the corridors of the real estate market, and then began to search for alternatives to either local or foreign! Which is apparent from observing the movements of domestic liquidity within the monthly bulletins regularly issued by the Saudi Arabian Monetary Agency, except the strong growth of liquidity back to pop up over 13 percent three years ago, has returned net foreign assets of local banks to surge over the last two years, reaching by the end of January last year, more than $ 141.7 billion, off a significant portion of cash abroad, while the remaining liquidity locally preferred experience once again In the financial market, encouraged by the significant decline in levels of asset prices, has increased its investment in a large number of factors and indicators mentioned shortly,Which explains the increase in the volume and value of trading in the market over the last few months. The maturity of the financial market indicators and experienced investors increased clarification of the previous section, the local financial market showed a significant improvement on all indicators, here is the complete fifth year straight of growth of profits of listed companies, in turn, contributed to raising the attractiveness of assets realized, either through lower profits, or via Repeating low double digit market values of assets relative to their book values, But compared with many regional and emerging markets and global, are among the lowest, and returns it as an investment opportunity to attract investor appetite domestically and abroad. this; as long as the increases in the values of assets governed by criteria and indicators of profitability and growth, as already happened some eight years ago, a shrewd and experienced investor appetite remains very interested in taking advantage of these opportunities,As can be seen, the iterator currently market profits up 16 bis, which is among the lowest repeaters financial markets around the world, as well as investors ' expectations for the next period, the financial market has two opportunities to maximize their profits and growth, the first: continued growth in the earnings of listed companies, in addition to starting many of the companies that were included in earlier was under construction, I would say it started operating profit, in turn, are expected to grow faster than older firms, and all of this is in the Interest profitability of market level. second chance: the domestic financial market remained elusive with the inclusion of a number of giant companies operating at all, perhaps the most important of the national commercial bank, which is expected to be only adds more than seven billion riyals a year ' profit market currently 103.3 billion riyals ', this in turn opens up the market to greater height and unacceptable, being based on actual profit from growth companies, which convinces the experienced investors to invest in assets with profit, and grows year after year.
If so, you could say that the ascent for the market during the recent period were justified at the basic level are economically, financially, and that any corrective retreats to the index performance; and resources and potential closely, compared with the market saturation of strong buying, emphasize that it would be healthy for the stock market, will provide the opportunity to enter the more liquidity you missed journey short ascent, this is precisely the matter bears more long-term investors, the latter being based on to solid ground based monitoring of overall economic and financial indicators key as each company targeted, as long as they are concentrated in the region of positive according to perspective as it exists now and expected future strategic decisions there would be little long-term perspective.
