Economic indices boost Optimism about Saudi Stocks Performance

Economic indices boost Optimism about Saudi Stocks Performance

The Saudi Stock Exchange’s main index ended trading higher on Sunday, gaining 0.50 points to close at 8644.47 points.

The total value of the trading reported was SR10bn ($3.7bn). While the toll of shares traded was more than 315mn, divided into 420,000 deals.

While the stocks of 82 companies ended the trading higher, shares of 109 companies slumped.

On the other hand, the spread between the advancers and decliners stocks ranged from 10.00% and 9.94%.

The Saudi Parallel Equity Market Index (NOMU) ended the day losing 311.10 points, to close at 20245.93 points; with a valuation of SR80mn ($21.3mn) and an overall tally of 685,000 stocks traded and divided into as many as 2,097 deals.

Dr. Abdul Rahman Baashan, head of the Shorouq Center for Economic Studies, said that the main Saudi stock index was to close higher; as the rising optimism around a coronavirus vaccine rolled out soon drove it.

Baashan explained that Saudi Arabia was better ready than others because of what it had achieved in the past period on implementing recommendations for underpinning the production of a coronavirus vaccine on the level of G20 member states.

Reviewing Sunday’s trading session; Baashan said that the outcome was an inevitable result of accumulated stimulating efforts. He predicted another hike in the value of the shares of promising companies that have been most affected by the pandemic; especially those belonging to the tourism, hospitality and entertainment sectors.

Baashan noted that the optimism witnessed in Saudi markets is to further grow. A denominating factor in that is Saudi Arabia being a key partner in the success of international efforts; including the World Health Organization (WHO), on producing and distributing the vaccine.