Saudi stock market set to rise
Analysts observing the Saudi market, said the market will likely rise after the holidays, which extends through next week, as the market was minimally affected by the European debt crisis. The DME, the largest stock market in the Arab world, closed for Eid al-Adha after the end of trading on Wednesday and will resume trading on Saturday, 12 November.
The Saudi index ended transactions on Wednesday, up by one percent at 6215.7 points, but is still down more than six percent since the beginning of the year. Hisham Tuffaha, head of asset management at Bakheet Investment Group said “I believe that the Saudi market after the feast will go higher. According to the transactions data, there is a return to investment institutions and a rise in the purchase rates of foreign funds.”
Data on the Saudi bourse showed a return of non-resident foreigners to the market via purchase agreements, last October, totaling 1.1 billion riyals ($ 283 million) with the value of sales totaling 737 million riyals, bringing the net value of their purchases to 324 million riyals. Tuffaha stated “this does not mean that there will be no speculation after the feast, but the trend in investment companies will increase in light of the growing institutional investment market.”
He explained that these investments will focus on sovereign stocks, particularly in the sectors of petrochemicals, banking and telecommunications. According to financial analyst, Ksentini Yusuf, during the holiday, all eyes will be directed towards external factors, particularly oil prices and how to address the debt crisis in Europe. Hisham Thuffaha supports the same view, saying that the focus will be on oil and gold. He believes the European debt crisis will not have a significant impact on the Saudi Market. (Source: www.yallafinance.com)