14/12/2014
Specialists: sector losses are mere drop in share price
«PC» behind 12% of the Saudi stock market losses
Specialized in the Saudi stock market suffered losses of around 12 per cent of its market value because of the losses, which had on the petrochemical companies, explaining that data and falling oil prices about 45 percent gave a clear indication of the possibility of losing our ' company ' – the largest listed company in the Saudi market-20% but the company policy that kept prices on sale items, as they are between about such losses.
He said to «economic» economic analyst said that the petrochemical sector due to lower oil prices by 45 per cent and therefore everyone had expected a decline in profit ' Corporation ' and petrochemical companies generally amount equivalent to lower oil prices and reduced profits about 20 per cent but this did not happen because petrochemical companies and specifically ' SABIC ' not reduced prices they sell the same amount of oil prices did not lose the company, did not back down its profits as expected, indicating that the situation General market is dominated by members of the investors, predominantly collective movement in sale and purchase, are the most influential and most affected by the market. He noted that shares of large companies such as what happened with ' the retreat ' was the architect of the SR to 136.50 81 SAR did not lure the investors to buy because the majority turned negative, They have become wary of unjustified market, and have not benefited from this downturn only strategic investors to build their investments and said that the market is optimistic and this is not to say it's bad and will not settle down until traders felt who start to keep pace with the market they're in the wrong mode which will attract more investors who tend to pick and choose the appropriate arrow of large and successful companies to ensure no loss by giving the financial position of the company and ensure that current liabilities to assets Circulation. He noted that the banking sector, real estate and retail sector was affected by what happened in the stock market, banks rely on liquidity shortage could affect lending, and thus on its share price. He said that if the Government decided to reduce the projects, this will be reflected by the banks rely on government tenders. As real estate, stock market suffers when people purchase reluctance amid anticipation of a new Ministry of housing decisions and regulations.
He stressed the need to announce the petrochemical companies, which increased its results until the apprehension, said solutions to the expected impacts after oil prices and loss of market share is that the State has brought new investment to revive the economy, and may resort to the use of surplus and reserves for government spending on construction projects with the private sector greater access and more flexibility. He stressed that the challenges facing the real estate sector, both in the stock market or under the challenges of balanced demand somewhat and the estate of anticipation of the decisions of the Ministry of housing.
For his part, Hassan Akil economic consultant and former Undersecretary of Commerce to corporate losses in the stock market is justified, adding that the loss of petrochemical companies not exceeding being the company share price losses as the company remains successful, company ' SABIC ' not affected by plummeting stock prices, though major decline, it remained confined in the same company, arrow, indicating that fears of buying shares ' SABIC ' and other stock market due to concern is justified. The decline in oil prices would not affect the existing development projects and also projects that the State seeks to implement them and to the State by several options if the downturn in oil prices.
He said to «economic» Hisham Tefah Director local Governor that the Saudi stock market lost 12 percent of its market value after the losses, which had on the petrochemical sector during the past few weeks, which is a fifth of the Saudi economy and the market tied in one way or another with the price of oil and feedstock and not product-specific, adding that oil prices were the main driver of stock market investors should not rush the sale of that profit will come in the long term, and they amble one permit can raise oil prices, so would escalate the Saudi stock market.
At the time of the solutions in the oil prices and stock market losses, which often reflected on the economy of the State, he said that the solutions and the Kingdom would not allow the economy to enter a recession even if the oil price fell to $ 60 or less, and the fact that one has not followed Saudi barrels will be in front of difficult choices, stressing that Government spending will continue and what has been achieved during the past six years, the Government will not sacrifice momentum will continue spending for two reasons: the accumulated surpluses $ 2 trillion, equivalent to expenses for two years.
The stock mirror to know what will happen in 2015 and all indications are that the market will not move because of the negative and pessimistic, so everyone looks to the petrochemical sector and is a commodity strategy constitute 38 per cent of the income of Saudi Arabia, but no one looks at how pay per share and how distributed, adding that what happened is the result of factors behind the market direction, it is possible that other factors are driven off. He stressed that the challenges facing the real estate sector, both in the stock market or under the challenges of balanced demand somewhat and the estate of anticipation of the decisions of the Ministry of housing.
