Jassem Al-Jibran, head of research at Al-Jazira Capital, expected, in an interview with Al-Arabiya, that the profits of the third quarter of 2021 for companies listed on the Saudi stock market would continue to reflect the same performance for the first two quarters of this year, and it would not be an exception to it, and therefore it will continue its strong growth despite The continuing repercussions of the pandemic on the global economy.
Al-Jibran indicated that the rate of increase in the profits of companies in the Saudi market exceeded 500%, to rise from 11 billion riyals in the first half of 2020 to 68 billion riyals in the first half of 2021, expecting that the profits of 44 companies in several sectors covered by “Al-Jazira Capital” in the third quarter will reach 22.2 billion riyals. Compared to 10.6 billion riyals in the same quarter of last year, an expected growth of more than 110%, supported by the profits of major sectors, most notably petrochemicals, whose profits are expected to grow in the third quarter by 8.5 billion riyals, an increase over what was achieved in the third quarter of 2020.
Al-Jubran expected the continuation of the strong results of the banking and petrochemical sectors in the third quarter of this year, which will support the total profits of the Saudi market. He is likely to increase the net profit of the banking sector in the third quarter by 30% on an annual basis as a result of the rise in net income from financing and investment, while he expected quarterly growth. The petrochemical sector during the same quarter increased by 450%.
As for the telecommunications sector, it is expected that the sector’s revenues will grow in a remarkable manner, with profit margins remaining under pressure, with expectations of continued growth in the profits of companies in various other sectors, explaining that the growth estimates in the Saudi banking sector come with the support of the growth of the loan and deposit portfolios, due to The slowdown in the growth of real estate loans compared to previous very high levels, and the rise in housing unit prices mitigated this pace of growth.
The main Saudi stock index closed today’s session, down 0.37%, to lose 42.51 points, and close at 11453.25 points, with transactions worth 8.4 billion riyals. The volume of traded shares amounted to 180 million shares, shared by more than 370 thousand transactions, in which the shares of 57 companies recorded an increase in their value, while the shares of 127 companies closed down.