Despite another “red” session… Factors that raise the attractiveness of the Saudi market amid global concern

The Saudi stock market index closed trading today, Thursday, down by 2.24%, losing 285 points to nearly 12428 points, continuing a series of declines similar to the rest of the markets in the region and the world.

The value of trading in today’s session amounted to 8.5 billion riyals, as the shares of 27 companies rose while 181 listed shares declined.

“Saderat”, “Anaam Holding” and “Gas” were the highest gainers, with 9.94%, 9.9% and 6%, respectively.

While the shares of “Arab Insurance”, “Petro Rabigh” and “Atta” were the lowest, with 10%, 9.9% and 7%, respectively.

In terms of trading volumes, “Aramco”, “Al-Rajhi” and “Alinma” topped the shares of the most active companies in today’s trading.

Despite the declines, the Saudi market has gained more than 10% since the beginning of this year.

In an interview with Al Arabiya, Alaa Al Ibrahim, Head of Capital Markets Funds Sector at Alawwal Capital, explained that the Saudi market is affected by the movements of the global economy is normal, especially in light of an environment of high interest that affects the growth of the American economy and with it the global economy. Which the markets do not like, but it is worth noting several factors that constitute a milestone in the Saudi economy and market. The Gulf economies in general are now the most prominent in emerging markets, if not in the world, in terms of achieving growth rates of more than 6%, compared to a slowdown in the American and Chinese economies, The exhausted European economy is approaching recession.

He added that the issue of high interest rates will undoubtedly put pressure on the global markets and the Saudi market, but this pressure is expected to reveal real opportunities in the local market, and “our expectations are still positive that the market will end the current year with good growth rates in profits, but the opportunities should be seized in an appropriate manner. Adequate and careful selection of companies and sectors that are expected to achieve growth rates higher than the growth rate of the Saudi economy as a whole.

On the other hand, Al Ibrahim confirmed the existence of profit-taking operations in the market, but he considered that the partial exit of foreigners from the Saudi market, which is currently the best emerging market in the region, is an attractive investment. He continued, “During the past and current two weeks, we have witnessed a partial exit of foreign investors, but the result remains the net entry of foreigners into the market during 2022.”

He attributed the losses of the energy sector, compared to profits of about 40% in the American market, to pricing errors, but he stressed that the current declines reflect a kind of opportunity, especially that the local market is the most benefiting from the current crisis with the least amount of risk, and all indicators support that the Saudi market is milestone in 2022.