03/03/2010
Technical Analyst: There are indicators which confirm the confidence of traders in the market improvement
Improvement expected on the petrochemical sector performance, and tadawul at 2.5 billion riyals
The local stock market won yesterday with 20 points (0.32 per cent), the general market closed at 6445 points, at time of trading rose to 2.5 billion riyals
Hossam Jakhlab - Technical Analyst – is optimistic with the performance on the Saudi stock market in the near future, assuming that «if we connect the flowing improvement and the positive expectations for the first quarter results, it will lead to an improvement as well, thus increasing the index gradually to levels 6480 and 6530 and 6585 and 6650, respectively.
The market index started its dealings yesterday with the red point to reach 6412 during the first half hour, which is the lowest at the session, to get rid of its losses and launched a journey to a gradual rise to the point 6457 in the middle of the transactions, which is the top during the session, but it was unable to sustain any gains achievements and lost part of it before the closure.
Jackhlab, The Executive director of the Academy of professionalism, wants to close the cursor at the beginning of March, referring to the current level of centers building in the market and it improves the trader confidence; also there is positive anticipation on the first quarter results (the current). Shows in the retention stock price levels close to the highest price since the start of the year.
Jakhlb agrees with observers who tend to expect a performance progress in the petrochemical sector in the first quarter «based on the global rising demand and oil rising prices above $ 75 levels and low levels of inflation and growth improvement. The petrochemical sector shares will rise».
But in return, he does not exclude that there will be «surprises» in the outcome of the banking sector, but he seems confident that the results would be better compared with its counterpart in the first quarter of 2009, »The improvement is clear by reducing the reserves of Saudi Arabian Monetary Agency through banks lending stimulates in the third and fourth quarters of 2009 and the World Bank report ».
Trading values still recording low levels for sometime in which amounted to 2.5 billion riyals, which is close to the levels recorded by the market in the last two sessions, the amounts traded yesterday reached 106.8 million shares through the implementation of 68.6 thousand transactions.
Four sectors were decreased during the session, while the 11 sectors rose up; the industrial investment sector presided up to 1.47 percent gaining 69.38 points, followed by the cement sector rise by 1.33 percent gaining 55.49 points, while the telecommunications sector rose to 1 percent gaining 18.38 points.
On the other hand, the multi-investment sector presided the low sectors, down to 0.7 percent losing 19.18 points, followed by the real estate sector, a decrease of 0.4 per cent, losing 13.4 points, while the banking sector was down 0.34 percent, losing 56.62 points
The petrochemical sector presided the market during the session in terms of trading value, with a sector's share increased by 27.21 percent of 678.1 million riyals of the total value traded in the market, followed by the banking sector accounted for 15.03 percent of the value of 374.7 million riyals, while the insurance sector has accounted for 14.98 per cent, followed by the industrial investment, accounting for 7.79 per cent, while the rest of the market accounted for 34.99 per cent of the total value traded in the session.
183 paper has been traded during the session, 61 of them increased, while 48 were reduced, Yanz shares presided at 4.17 percent to the price of SR 81.25, extending its movement to the second session as well in its activities since November 2009, after the company announced its approval on the Capital Market Authority to raise its capital by offering rights shares about 125 million riyals
It occupied the second place in the green list rising to 3.78 percent to 17.85 riyals in the price of active sessions per share for more than a month ago, followed by SAFCO up 3.57 per cent to the price of 145 riyals its highest level since October 2008.
On the other hand, Riyadh Bank reduced by 2.79 percent to 27.9 riyals, continuing its decrease for the second session as well. The Bank approved on the distribution of SAR 1.05 billion, the second half dividend by 0.7 riyals for a total dividend of 2009 1.3 riyals per share, 13 percent of the nominal value of shares, followed by Saudi Fransi, share extending its decline for the fourth session, down 2.56 percent to 45.7 riyals price relative decline as a share since last January, its recommend to allocate one riyal per share dividend for 2009, followed by Cisco shares down 2.49 per cent to the price 15.65 with first decline after three green rounds.
Al Inma Bank Shares decreased by 0.39 per cent to 12.7 riyals, presided the price list at all levels reaching 19.4 million shares with a 247.97 million riyals worth, divided into 3.89 A deal.
