18/01/2015
"SABIC" profits today give an indication of the development of "petrochemical" sector
Results of the leading companies determine the market this path week and banks support index
While the Saudi stock market index in the last sessions on Thursday, down, analysts were optimistic that the market achieve positive results this week, depending on the results of companies, especially the leadership, most notably the "SABIC" which announces its earnings today.
And closed the final session of last week at 93.21 points at 8458.72, a decline of 1.09 per cent and trading at more than 8 billion riyals, while the market saw at the end of the trading session higher value of the shares of 31 companies, while shares fell 118 company, as the number of shares traded reached more of 294 million shares were distributed to more than 155 thousand transactions.
He told «economic» Mohammed Alshammemari, a specialist in the field of stock analyst, said the market before the test to pass the annual results of companies.
"The market has seen considerable pressure from the banking sector, where the announcement came Rajhi Bank results last Thursday, lower than the median forecast, shedding 3 per cent, pointing out that there was a strong selling share to Al Rajhi, the impact on the performance of the rest of the sector.
He pointed out that the market index can be achieved between 8100 and 8600 point rates, which is based on the Declaration of SABIC for their results, pointing out that if these results higher than the average forecast, then it will bring the market into positive repercussions, the continuation of the index to rise at the borders of 9000 points, during the next few weeks. He predicted that, following rises series until the end of the day 21 (January) this month, and by the end of advertising companies, explaining that the most prominent sectors which will see a rise in the coming period is the banking and telecommunications sectors, because of the positive results, followed by the petrochemical sector, the impact of low cost feedstock user in the cost of their products. For his part, pointed to «economic» Mohammad Yahya, technical analyst of financial markets, the market is characterized by its dealings in the past week to enter the liquidity speculative in general to take advantage of the sharp volatility because of the advertising companies and the entry of some smart liquidity of investment to exploit the golden opportunities that appear for some companies with any pressure in the market.
He pointed to the importance to note that the effect of the descent of the oil seemed less far than it was previously, where the oil markets have seen a sharp decline and heavy oil prices of various kinds, the index reached new lows did the market is affected by the same unit of vulnerability in the past, noting that the reason for this lies in two things: first, former vulnerability was due date associated with the budget announcement significantly the price of oil, but now the budget has been announced and identified expenses, the impact of the descent of the oil remains weak even lower levels of $ 40 (Brent), then the effect may be back, or when approaching the date of announcement of next year's budget oil effect may be due to come to the fore again in the event of continued decline and growing concerns.
On the second matter, the presence of catalysts and the effects are stronger than the oil effect for the time being said, namely, the positive results announced by the companies in the market in general and banks in particular, which have contributed to the support of the general index and maintain the cohesion of the market, despite the violent oil decline and fall of petrochemical companies are also ads distributions and grants a big role in the entry of investment funds and exploit any drop to increase quantities.
Yahya expecting it to be busy next week's announcements of the caliber that will contribute to determine the market trend in the coming period landmarks, because everyone is on a date with the Declaration of SABIC financial results for 2014 and find out when the company affected by the fall in oil during the fourth quarter of the year, and it can help investors predict the expected results for the next quarter or the withdrawal of building centers in SABIC and petrochemical company.
He explained that the traders await announcement Telecommunications Union Company to know the truth about the resulting impact on the adjustments made to the financial statements which led to the decline in the share of the nineties to 40 without and what will happen on the issue of the company with Zain. The Saudi Telecom Company, expect to be announcing a positive impact on the market, where the company announced positive results this year, especially after the disposal of foreign investments and focus on internal investment and if profits equivalent to the corresponding quarter earnings, we expect a growth in the company's profits for 2014 by more than 10 in percent from the year before.
Technically, he said, "It is the general index is very ready to interact with the negative news than positive news by virtue of persistence index so far in the bearish path and all the gains we've seen are mere temporary physical repercussions, and even get out of this downward path on the index must be summit higher than the summit of 984.8 points, and higher than the 900.7 bottom, except for that year, the indicator is still technically in a bearish path and a candidate to break the bottom 7125 points if performance continues as it is currently the quality of liquidity entering the market, which is evident by the nature of speculation over investment 8644 point currently represents the resistance of the index, which is likely to be profit-taking correction to 8109 levels zone and likely bounce them to resume climb again and go back to try to configure the upward path. "
He added, "In the absence of such rebound 8109 points indicator breaks this very important area of support will lead the overall index to levels below Al7500 point."
In turn, predicted Khaled Al-Ghamdi, stocks analyst, to achieve new market gains this week in light of the Declaration of a number of leading companies in the market results, and in the forefront of those leading companies listed on the Saudi company "SABIC", hinting that the vast majority of traders are focusing their attention on "SABIC "sectors and banks, which began to declare their results during the last period.
He guessed that the record levels of the market at the borders of 8500-9100 points, led by SABIC shares and the banking sector, and the telecommunications sector, which will begin to declare the results of this week, in addition to mining, petrochemicals, and the food sector and hotels.
In terms of sectors, agriculture companies and food industries sector offers high sectors by 0.26 percent, while the banking and financial services sector provide low-sectors increased by 2.31 per cent.
