The main index “TASI” of the Saudi stock market, “Tadawul”, resumed its upward journey, on Tuesday’s session, rising 0.16% to 11,776.31 points, with trading exceeding 7.2 billion riyals.
The market continued to rise, after a slight decline in trading on Monday, which constituted a dividing line, from taking profits and securing gains, after 7 previous consecutive sessions of gains.
The CEO of Mikyal Financial Technologies, Hisham Abu Jameh, said in an interview with Al Arabiya that the results of the telecommunications and petrochemical companies are taking importance in influencing the market index at the present time.
Abu Jameh explained that the results of “Mobily” and “Zain” are more sensitive to reducing the percentage of costs, compared to the Saudi Telecom Company, which promises a much better situation, and is the only one in this sector that joins the “Shareek” program due to its large size.
He pointed to low results in the petrochemical sector, such as the results of “Yansab”, considering that the strong growth in the economy must be paralleled by strong growth in corporate profits, and therefore we hoped that Petrochemicals would achieve positive results in the third quarter, compared to the results of the second quarter.
It is also expected that some investors will reconsider the valuations of some stocks, especially with profitability multipliers in the market in general at about 28 times.
Abu Jameh talked about what he called “a price war between banks over the interest rates of lending to individuals, accompanied by a significant growth in lending to the real estate sector, but the question remains to what extent we will reach this competition.”