Middle-east Arab News Opinion | Asharq Al-awsat

Foreign Investors Resume Saudi Shares’ Purchases before Eid al-Adha | ASHARQ AL-AWSAT English Archive 2005 -2017
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A picture illustration shows U100 dollar bank notes and Japanese 10,000 yen notes taken in Tokyo August 2, 2011. REUTERS/Yuriko Nakao

Riyadh- Tadawul latest figures revealed a rise in purchases of enlisted companies’ shares by foreign investors during last week’s session.

According to released figures, purchases picked up 30% compared with selling levels and this means that foreign investors captured attractive investment opportunities in the Saudi shares market.

In the same context, the Saudi stock market index rose around 2.6%, 155 points, closing at 6,177 points compared with 6,022 points last week.

Last week, Russia and Saudi Arabia signed a joint memorandum on the oil market. Both parties also agreed to form a joint group to determine procedures required for stabilizing the oil market; this step boosted oil profits.

As Eid al-Adha approaches, experts forecast post-Eid trading to be more profitable with regards to flow of monetary liquidity and its coincidence with the summer vacation in the country.

Traded monetary liquidity underwent in the past week a slight rise reaching USD3.5 billion (SAR13.1 billion) compared to USD3.3 billion (SAR12.5 billion) in the week before; that is a rise of 4.8%.

Most sectors in the Saudi shares’ market witnessed positive performance this week except for the energy sector whose trading dropped slightly, less than 1%. The insurance and petrochemicals sectors were the most profitable ones with an increase of around 4%, followed by sectors of hospitality and tourism as well as banks and financial services whose gains upped 3%.

These updates coincided with the latest statement delivered by the Saudi Capital Market Authority (SAMA). The authority recently adopted new regulations to organize investments of foreign qualified institutions in the enlisted shares.

The purpose of this step is to exchange expertise and knowledge among local financial institutions and investors, to enhance the performance of enlisted companies and to foster the position of the Saudi financial market.