*Manal Al-Ahmadi from Jeddah
Analysts in the stock market expected that the market would continue in an accidental direction until the middle of next month, October.
They pointed out that the levels of stock prices of companies suitable for investment after the end of the evaluation stage affected by decisions of fund managers and take new centers and restructuring of investments based on the results of companies.
Hussam al-Ghamdi, a stock market analyst, said, "It is expected that the market will move in an accidental direction extending until mid-October and then the market will resume its activity."
He believed that the performance of the market is currently the result of the end of the results period, which is followed by a period of reassessment of fund managers their options in the market and their positions, based on the results of companies. He stressed that the next phase will be very positive for the market.
He added that when the index closed at 7469 points and scored a bottom at 7451 points, it led to a liquidity outflow of 389.4 million riyals, the decline of more than 140 companies and the rise of more than 30 companies.
He is expecting a new bottom for the index of the stock market at 7520 points.
Mohammed Al-Shammari, a stock market analyst, said, "This stage of performance has been affected by the decisions of fund managers, the taking of new positions and the restructuring of investments based on the results of companies and their performance in the market for the last quarter on which the expectations of performance during the fourth quarter of this year." This indicated that the outlook for the results of the banking sector and petrochemical companies and Saudi Telecoms are very positive.
He added, "The stock market index broke support 7550 points and 7600 points."
He pointed out that the support level of two double floors with low volumes was between 7335 points and 7310 and the support area with strong trading volumes was between 7220 points and 7030 points.
Moreover, Sulaiman Al-Shammari, a stock market analyst, said, "The market is waiting for stimuli to raise the volume of trading and therefore jump in liquidity after the decline of the index last weeks."
The decline is likely due to inflation in some of the financial indicators of the market, coinciding with the end of the maturity season for the semi-annual distributions of most companies.
