Positive expectations for Tadawul during September

Positive expectations for Tadawul during September

According to financial analyst: there are positive expectations for the performance of the Saudi stock market (Tadawul) during September.

  • The Saudi banking sector is one of the best existing systems globally.

The financial analyst Dr. Hussein Al-Attas expressed optimism about the performance of the Saudi stock market in September.

Al-Attas confirmed, in an interview with Al-Ikhbariya TV, that investors have the opportunity to build their positions, and that companies will start to distribute their profits during this month, which will give traders of the stock market good opportunities to invest those profits, pointing to support the performance of indicators after positive signs between China and the United States of America, their representatives to meet this month.

Al-Attas pointed to the impact of trade war between the two sides on the basic materials sector according to the results of the second quarter, and may affect the results of the third quarter, which will start a month from now.

Regarding the rate of decline in Tadawul to 8%, Al-Attas said that this has not been seen in three years, pointing out that this is linked to the widespread fluctuations in commercial markets, uncertainty in the US-China trade war, political events, and fluctuations in interest rates, which are expected to a 1% reduction.

Al-Attas continued, saying: “The statements on high reduction of interest rates, affected the banking sector; after the loans given by banks to the private sector, it has a problem in repayment and rescheduling, which affected the sector, noting that the reaction of the banking sector and investors towards interest rates was exaggerated,” re-emphasizing that the Saudi banking sector is one of the best existing systems and in terms of solvency considering the monitoring factors for loans to companies and individuals.