The Saudi stock index closed today, Sunday, down 2.6%, at 11,161.4 points, affected by the wave of decline in global markets. And the drop in oil prices.
US and European markets tumbled on Friday amid fears of a recession amid sharp interest rate hikes.
Oil prices have fallen by around 5%, even to their lowest level in eight months, with the dollar hitting its highest level in over two decades on fears that high interest rates will push major economies into recession. , reducing the demand for oil.
Mazen Al-Sudairi, director of research at Al-Rajhi Capital, said the drop in oil prices was reflected in most businesses, as well as concern over fears of a recession in the global economy and its impact on global oil demand.
Al-Sudairy added that markets are now in a waiting phase for inflation and employment data in major markets and other data that will affect markets to varying degrees.
Shares of Aramco, the Saudi oil industry giant, fell by 2.6, Rabigh Refining and Petrochemicals (Petro Rabigh) by 2.9%, Saudi Basic Industries Corporation (SABIC) by 2.1%, chemicals of the methanol (Chemanol) by 4.7% and National Industrialization by 4.1%.
Shares of Al-Rajhi Bank fell 3.3%, Riyad Bank by 1.85, The Saudi British Bank (SABB) by 4.5% and Saudi Investment Bank by 4.6%.
The exchange value was approximately 4.4 billion riyals and the volume of shares traded was 128 million shares.
For his part, Rasanah Financial’s Head of Asset Management, Thamer Al-Saeed, said that the market decline is expected due to the holidays last Thursday, the negative trend in global markets and the drop in oil prices. in light of the increase in interest and the increase in borrowing costs, and therefore the decline is a natural reaction.
Thamer Al-Saeed added in an interview with “Al-Arabiya” today Sunday that due to the high interest rate and the return on other assets, he believes the markets will see the change and enter a less period. attractive and some investors will become more defensive.
He explained that the Saudi market will have greater defensive capacity as it seeks to create diversified economic growth from within and reduce dependence on the global economy.
Thamer Al-Saeed said investors in the Saudi stock market will target stocks related to its products more internally, especially sectors such as retail and cement, which are the most attractive after the food sector with demand. stable.
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