Riyadh- Saudi stock market resumed its trading on Sunday – following Eid al-Fitr holiday – amidst newly achieved gains of around 60 points, causing the market index to jump to its highest rate since 20 months.
On the level of Saudi stock market performance during the first half of 2017, market data and indices show that they concluded first half trading with 3% gains (216 points), closing at its highest since 2015 third quarter.
Since the last two sessions during Ramadan month, the Saudi shares market is passing through a positive stage with gains reaching 8% during three sessions – the first sessions following appointing Crown Prince Mohammed bin Salman.
Following these gains, the Saudi shares market is forecast to undergo profits-taking but the stability of index above 7,400 points will prompt more monetary liquidity to enter the market dealings and snatch investment opportunities.
In this context, the shares’ index continued to rise during Sunday’s trading, reinforcing its two-sessions gains before al-Fitr holiday – the index closed at 0.8% (specifically 7,486 points) amid tradings that reached around SAR3.8 billion (USD1.01 billion).
On Sunday, majority of listed companies shares rose while SABIC share increased 1% and National Commercial Bank surged 5%.
These updates coincided with the Saudi Capital Market Authority (CMA) previous confirmation that putting the domestic capital market on MSCI index for emerging market is the first step towards the Saudi capital market fully joining the index.
In addition to enlisting the Saudi capital market on MSCI index, the market is currently on FTSE for emerging markets.
The CMA has reported that in case of joining international indices including MSCI for emerging markets then this would bring benefits including supporting the market stability and limiting fluctuations through underpinning organizational investment in a way that increases efficiency of the financial market.