Financial analysts said the decline in the Saudi stock market yesterday was affected by several factors, including the results of companies for the third quarter and the return of funds and portfolios of investment valuation of their investment centers.
They stressed that the decline of the index is normal to reach a new bottom and then back up about 8000 points, which were supported by several internal and external factors.
Mohammed Omran, a stock market analyst, said to AlEqtisadiah that the index of the stock market is moving towards a new low at 7000 points and then rise to about 8000 points.
He pointed out that the decline came under pressure from several factors, including the end of the period of announcement of companies on the results of the third quarter and the start of portfolio managers and traders to determine their new options from companies, as well as the return of funds and investment portfolios to evaluate their investment centers.
He added that one of the most important factors that negatively affected the general index are the banking sector, which put pressure on the stock market and push it down because of the continuation of the corrective market after losing support at 7,750 points.
Furthermore, Hossam Al-Ghamdi, a stock market analyst, said that the closing of the stock index was low at the level of 7496 points and trades worth three billion riyals, a high figure in light of the market decline.
The index closed last Thursday at 7662 points, trading at 2.9 billion riyals.
He pointed out that the market is on the verge of a period of good for the rise of internal stimuli, including the announcement of the general budget and anticipation of the market joining the index of emerging markets in the first quarter of next year,
He emphasized that the market will be affected significantly in the coming weeks by the movement of the banking sector.
In addition, Salman Al-Shammari, a stock market analyst, said that one of the most important stimuluses for the market is the high liquidity.
He stressed that the decline of the index is natural to reach a new bottom and then back up about 8000 points, including 9000 points supported by several internal and external factors.
