*Abdulaziz Al-Faki from Dammam
Financial analysts said to AlEqtisadiah that the general trend of the Saudi stock market is moving in an upward direction with the expectation of announcing positive financial results for the rest of the listed companies, especially the leading ones, and the emergence of other sectors that will leading during the coming period, which means the occurrence of switching positions in the market.
They expected the market to start trading this week amid anticipation of results to identify sectors, which will be redistribution of investments in portfolios of dealers.
Saud Al-Batal, a financial analyst, said the performance of the market remained positive and goes on the upward path by reaching 8666 points with a resistance area that the index is expected to reach in the coming period.
He pointed out that the factors of the rise in the market during the past weeks, which surprised many of the dealers, is due to optimism of the levels of spending from the general budget and also the announcement of the results of the banking sector, which had high profits that made him lead the market during the previous period.
He added that during a week or more trading is expected to decline as a result of profit-taking, and there will be fluctuations; however, the uptrend will continue.
He pointed out that the sectors that will be influential and lead the market for the upcoming rises are the sectors of "cement" and "insurance."
He stressed that these sectors did not keep pace with the rising waves in the past period, which witnessed rises for leading companies such as "SABIC" and the "banking" sector, which is expected to take a sideways course and stabilize from current levels.
There will be no significant drop in the shares of these companies, but there will be fluctuation in narrow ranges, while other sectors, including "cement" and "insurance", will lead the market, thus changing positions in the market.
He said that the liquidity rates in late December 2018, less than a month from now, saw a decline that reached a peak of about 50 per cent of the volume of trades in general.
But, with the beginning of 2019 so far, the market has seen an increasing rise in volumes of trades and deals, which is positive in the continuation of the rise during the coming period.
He pointed out that the most important factors, which may be influential this week, is the positive financial results of all companies for 2018, as well as the start of expenditure from the general budget on approved projects.
For his part, Ahmed Al Salem, a financial analyst, expected that Saudi stocks will start trading for the week waiting for more results of companies, which will help the index maintain its gains that was achieved in the past weeks.
He pointed out that traders in the market waiting for the results of "SABIC" in particular for the sector and the general market.
He said that the expectations are that it will be lower, but that does not mean that the market is waiting for a significant decline, but only a stage to profit and change the centers for many investors.
Therefore, it is clear that the market is headed for a healthy correction followed by stability until the right of Al Rajhi Bank stocks and the distribution rights to the banking, petrochemicals and telecommunications sectors.
He added that with investors going to buy quietly in the cement sector, which is awaiting huge projects that start with the second quarter of the current year 2019, through the tourism projects that Saudi Arabia intends to start as planned to achieve the Vision of the Kingdom 2030, as well as the note that foreign investors want to increase their portfolios of telecom stocks, especially after the adjustment of shares "Mobily" and "Zain" in respect of the value of the license, which the two companies have sought for a long time.
Al-Salem explained that in general, the performance of market and through trading in 2018 shows their confidence in their attractiveness, low risk, the balance of rise and fall, low herd policy at least in decline.
Perhaps this stems from the rising culture of the trader and its ability to identify sources of danger, where it can today distinguish between profit-taking and correction, as well as to determine whether it is itself a quick, medium or even long-term investor.
Hence, the market has become attractive to foreign investment for its ability to exit or mitigate whenever it wants, unlike other markets, which barely exceed 5 per cent, compared to the Saudi market.
This is an attractive feature of the market; therefore, the market will start this week amid anticipation of results to identify the sectors, which will be distributed centers or added to the portfolio of investors.
Although expectations are for profit taking with a lull in trading, without forgetting the weakness in China and the trade war, which affect the companies that are linked to the export of many of their products to abroad.
Al-Salem believes that the telecommunications sector may be the most likely to rise during this week in anticipation of SABIC's results and full market impact.
He pointed out that any correction in a somewhat harsh manner, which is an opportunity to buy to achieve rapid capital gains.
Ahmed Al-Mulhem, a financial analyst, expected an increase in trading volumes during the current week, accompanied by a wave of profit taking and the improvement of some financial centers.
He pointed out that investors in the market are waiting for the rest of the companies to announce their financial statements for 2018; therefore, it will take their investment decisions in the market for the next stage, not only in the short term, but in the long term.
Al-Mulhem said that there are sectors that will have a clear impact on the market trends during the next stage, especially the sectors of "cement", "retail" and "insurance."
These sectors will work side by side with leading sectors in identifying market paths in the coming weeks.
