Riyadh- Around 165 Saudi firms are preparing to release their financial results of the second quarter of 2017, amid expectations that the profits of the companies listed in the stock exchange market will witness some growth compared to the same period in 2016.
In this regard, Saudi firms achieved during the first half of 2017 net profits of SAR30.3 billion (USD8.08 billion), proving that the Saudi economy no longer gets affected by the drop in oil prices due to the economic reforms recently carried out by the kingdom.
Based on this, adding Saudi stock exchange market to the watch-list of MSCI is considered a transitional leap for the local market by which investments are expected to surge ranging between USD30 billion to USD40 billion.
In a related matter, the Saudi index concluded last week’s trading with a 1.5 percent rise (109 points), closing at 7,313 points compared to last week’s closure at 7,204 points.
Monetary liquidity of last week’s trading witnessed a slight decline with SAR14.8 billion (USD3.9 billion) compared to SAR15.4 billion (USD4.1 billion) during the previous week.
These developments coincide with a high rise in profitability of the first quarter of 2017 after the listed Saudi firms released their results, compared to the same period in 2016 – a growth of 38.1 has been achieved in profitability of Q1 2017.
According to the released results of the Saudi companies during the first quarter of 2017, 88 listed firms achieved growth in profits compared to the same period of 2016 (first quarter) amid a drop in profits of 79 companies and financial losses incurred by 29 others.