Saudi Gazette report

RIYADH — Saudi Arabia’s Tadawul All-Share Index (TASI) recorded on Sunday the highest rise in 15 years thanks to the easing of coronavirus restrictions coupled with a jump in oil prices.

The main TASI index of the Saudi Stock Exchange (Tadawul) ended Sunday’s session, up 0.63 percent, to gain 74.25 points, and close at the level of 11780.14 points, with a turnover of SR7.5 billion.

However, on Monday TASI slipped 0.1 percent to 11,758 points with a turnover amounting to SR7.2 billion.

Retail and tourism stocks were the biggest beneficiaries of the relaxation of the coronavirus precautionary measures and preventive protocols that came into effect on Sunday, Oct. 17 and that was a boost to the rise of the index, which continues to achieve its highest levels since 2006, Al-Arabiya.net reported.

Walid Bin Ghaith, member of the Saudi Economic Association, said that the financial market received strong support from a coherent oil market and a rise in demand, in light of a deficit in the level of supply of up to two million barrels per day.

Bin Ghaith said that the oil market is likely to have more cohesion with the entry of the winter season, the continuation of demand and the increase in economic recovery, in light of the announcements by most countries of the return of the normal activities and the lifting of the ban and precautionary measures to stem the spread of pandemic.

He expected that the results of companies listed on the Saudi stock market would witness an increase of 15 percent in the third quarter of this year, including petrochemical companies, after nine companies announced in general that they recorded a 26 percent growth in their results so far.

Among the most important sectors that will witness a good performance, the banking sector is in the forefront with posting a growth of 18 percent in the third quarter, driven by the lack of increased debt provisions, as well as a surge in the size of the lending portfolio, and the continued growth in housing loans after a phase of decline.

Thamer Al-Saeed, chief investment officer at Mada Investment, said that the stocks that benefit from the return to normal life in Saudi Arabia are all stocks that deal directly with individuals, such as companies that own sports clubs, commercial centers, contracting companies and retail companies.

“The Saudi stock market is heading to record gains for the fourth year in a row, and this is a precedent that the market has not been accustomed to before,” he said while noting that the market has several hurdles to overcome.