Saudi Stock Welcomed Ramadan With a Rise in All Sectors

Saudi stock opened the month of Ramadan with a rise of 64 points representing 1% increase and closing at 6479 points. This rise was supported by a group rise in all sectors led by Real Estate Development and Petrochemicals. However, despite this rise there was a decline in share exchange by 26% falling to 2.9 billion Riyals, an all-time low for the past 8 months. 

The rise in exchange within the real estate sector was led by Jabal Omar stocks, which was tied to news of furnishing 6 hotels in its project based in Mecca, during the next 12 to 18 months. This is in addition to operating Conrad Mecca Hotel, with 438 rooms, on 20 floors.
The company's projects are based in an important area and generate high occupancy rates. This makes their stocks attractive to investors especially with continual opening of new projects, promising more profits throughout the year. In addition Vision 2030 serves the interests of the company's projects by increasing the number of pilgrims and Umrah visitors to 30 million over the coming 15 years.

The rise in Petrochemicals came as a result of the price of oil pushing the 50 dollar barrier and holding steady at that level, which encouraged risk-taking in dealing and purchasing of stocks.

The indicator remains capable of improving its performance once it crosses the 6500 barrier, which will increase the chances of dealing up to the level of 6700 points (at least).

The details of the new program of national transformation are due to be announced, which will include important information about the application of Vision 2030. Such details may enclose important factors which will influence the market.
Until such details are announced it is difficult to predict the route that the market will take, or the market's ability to translate such details into decisions.

The Market's Overall Performance

The general indicator opened at 6413 points, receding by 0.26 % to 6396 points, then rose to its highest point at 6479 points, a rise of 1.04%.
At the end of trading the indicator closed at 6477 points, a rise of 64 points (1%).  Rates of exchange receded by 26% to 2.9 billion Riyals, its lowest point for 8 months, while stocks shared receded by 32% to 159 million shares. The average rate of exchange of stocks was 0.84%. The rate of dealing decreased by 27% to 63.9 thousand deals.

Sector Performance

All sectors showed a rise, led by the real estate development sector at 4.2%, followed by the energy sector at 3.1%, then insurance at 2.4%. 
The highest rate of exchange was Al Masaref at 844 million Riyals; a rise of 29%, followed by Petrochemicals at 811 million Riyals; a rise of 28%, and finally Insurance at 396 million Riyals; a rate of 13%.

Stock Performance

Stock exchange rose by a rate of 73% versus a decrease of 21% and a stable rate for the remainder.
The highest rise was by Jabal Omar by 7.3%, closing at 61.75 Riyals, followed by Axa Cooperative by 6.23% closing at 15.85 Riyals, and in third place Tawuniya a rise of 6.2%, closing at 91 Riyals.

On the other hand, receding stocks were 'led' by Cables a rise of 4.6% closing at 7.25 Riyals, followed by Zain Saudi, a rise of 4.24% closing at 7.9 Riyals, and thirdly Al Sahara closing at 10.65 Riyals, a rise of 3.88%.
The highest dealing was Alinma at 716 million Riyals, a rate of 24%, followed by Sabic at a value of 683 million Riyals, at a rate of 23%, and thirdly Zain Saudi at 134 million Riyals, at a rate of 4.5%.