Saudi stocks fell 22 points, losing 0.3 per cent and close at 7,730 points after offsetting about 86 percent of losses before the end of the session.
The market was down 2 per cent during trading under pressure from the banking sector, however, the sector resumed its rise, as the "basic materials" becomes the largest compressor at the end of the session.
The weekly report indicated that the market is likely to fall back to 7600 points and that the expected decline in banks will be temporary, which happened in yesterday's meeting.
Adjustments that made did not affect on the banks' financial position nor will it affect the future cash flows that play a role in stock valuation.
The sector is still trading with low returns, which reflects the market's reservations towards the sector after the issue of disagreement on Zakat appeared at the beginning of the year, according to its annual reports.
Technically, the market remains below the averages and gives a negative signal to restore the 7811 levels to improve the reading and exceed the 200-day average at 7950 points that will restore risk appetite for the market. The 7600 levels remain in support of trading.
Overall market performance
The general index opened at 7,753 points, as the lowest point was at 7589 points, losing 2.12 percent.
At the end of the session, the index lost most of the losses to close at 7,730 points, losing 22 points, or 0.24 percent.
Liquidity fell 16 percent by about 550 billion riyals to reach 2.8 billion riyals.
Traded shares fell 13 per cent by about 18 million shares to reach 116 million traded shares with a turnover rate of 0.21 per cent.
The deals fell 23 per cent by about 29,000 to reach 101,000 deals.
Sector performance
Four sectors rose against the decline of the rest.
The rise was led by "Insurance" by 0.9%, followed by "retail luxury goods" by 0.5 per cent, and "long-term goods" by 0.4 per cent.
The decline was led by "commercial and professional services" by 2.5 per cent, followed by "media and entertainment" by 2.5 per cent, and food production by 1.6 per cent.
The highest turnovers were "banks" by 30 percent with a value of 866 million riyals, followed by "basic materials" by 23 percent with a value of 662 million riyals, and "Insurance" by 13% with a value of SR 368 million.
Stock performance
The rise was led by "Metlife" with the maximum level to close at SAR23.86, followed by "Acig" by 6 per cent to close at 19.26 riyals, and then "Medgulf Insurance" by 4 per cent to close at 16.80 riyals.
On the other hand, the decline was led by "Saudi fisheries" for the maximum to close at 34 riyals, followed by "Amanah Insurance" by 7.8 percent to close at SAR 25.45, and "Enaya" by 5.9% to close at SAR 23.
The highest turnovers were "Al Rajhi" by 11% with the value of 332 million riyals, followed by "Alinma" by 11 per cent with a value of SR 315 million and then "SABIC" by 9 percent with a value of SAR 264 million.
* Economic Reports Unit
