Saudi shares back strongly after the Eid holiday

Saw stock Arabia in the past seven years, increases in the first week after her return from the Eid al-Fitr holiday; where the market last year rose 0.4 percent, and was less a rise during the period, for a trading market for only two during the week, and were less increased during the period, the trading market for two only during the week. Typically the market to a strong return after the Eid holiday, but oil fell by about 7 per cent, and negative developments due out of the United Kingdom from the European Union may increase pressure on the market especially as the corporate results season began, making liquidity awaiting the results of the construction and modification centers, this may miss purchasing power to face selling pressure resulting from external factors, but that the British central bank will make a decision regarding the interest rate on the pound sterling, which may take the policies to limit the decline in the currency, which contributed to the rise in the US dollar, which is a private haven with expectations for a rate hike in September (September) and the dollar index is still able to continue Alaratf about 3 per cent to reach 100 points, which would be the highest level for the current year levels. A strong dollar would be negative effects on the prices of goods, including the determining factor for oil in the domestic market as well as it will contribute to the decline in the profitability of companies that rely on overseas markets, including the petrochemical sector, one of the leading sectors in the market. It is expected that the new policy begins for "trading", after the lifting of a trading commission shares to 15.5 points, and work starting from Sunday, 17 July of this, where the moves will appear daily ownership of senior executives and board of directors in addition to those named in the prospectus, which contains to those with less than 5 per cent, increasing the transparency and this may have a positive effect. Technically the market will find support at 6290 points level during the coming period and still the market is moving in negative territory in the short term since the April (last April) and the market achieve low values ​​for the highest level this year at 6875 points, which is the strongest resistance to the market and if exceeded will achieve market levels surpass 7,000 points barrier. The market value of the shares issued at the end of the first half in 2016, 1.504 billion riyals registered a decline of 25 per cent equivalent to 509 billion riyals, compared with the first of the previous year in which half of the market value of 2013 billion riyals. While the Saudi stock has lost about 75 billion riyals of their market value at the end of the first half of this year. The total value of shares traded 688.19 billion riyals, and decreasing by 34 per cent, compared to the first half of the previous year. The total number of shares traded 38.74 billion shares compared to 39.03 billion shares traded during the first half of the previous year, a decline of 0.74 per cent. On the monthly level, the Saudi stock has returned to profit in the monthly performance to close at 6499 points, winning 51 points by 0.8 per cent, to earn about 16 billion riyals in the market value of up to 1.5 trillion riyals. The gains during the month stood at 3 per cent before the market contraction, especially in the last week of the month following the exit of the United Kingdom from the European Union, which has caused shock in the financial markets and commodities.
Turnover fell 29 per cent to 82 billion riyals. Add to that the support zone is located at 6200 points, and achieved the lowest point the market at 6256 points before the bounce and enter the market path aside, even on a monthly performance index lost most of the gains, as well as offset most of the losses to close at the highest relatively slight difference. This behavior gives the suggestion that dealers at a loss and frequency, so it has not been decided or market maintains a positive or negative performance investigator. This comes frequency with low activity, before the announcement of companies for the second quarter that carry new data make investors about investment options results may be different from what it was during the last period, and this is what will drive the market to break the confusion and determine the course of the activity liquidity coincide, but remain levels 6200 support barrier points, while resistance at 6,800 points, which override the market will enter a new phase of ascent, which ends penetrate the barrier of 7,000 points.