Where is Saudi shares going this week?

The Saudi Market is entering this week amid different directions; On the one hand, there is a state of optimism fueled by positive performance in the last five sessions, and the simultaneous increase in oil prices. On the other hand, the fear remains a list of profit mowing with the most important resistance level at 12100 points, especially as the market historically does not rise more than 6 consecutive sessions, except in rare cases, in addition to the pressure that cement, petrochemical and public facilities may experience after the latest increases in diesel prices by Aramco. The Saudi market will rely on the energy and banking sectors this week, driven by improving oil prices and the strength of the dollar, with the inauguration of US President Donald Trump approaching. As the witness awaited the cement sector this week, investors are awaiting the cement sector, whose losses were led by the Saudi market scene during the handling of last Thursday, after companies revealed the impact of raising diesel prices on production costs. The increase that affects most of the Saudi businesses that work in the sectors of cement, petrochemical and food has ranged the impact of about 1% to 14% in its maximum production costs. But to convey these costs to the final consumer, the challenge against the departments of those businesses, as well as the upcoming plans on their part, remains to neutralize the impact by improving the efficiency of energy. This comes amid a number of announcement of the businesses to “trade” their work within the ‘industrial sector competition program’ to develop and increase energy efficiency. The program provides easy funding to businesses that want to improve energy efficiency within the sector structuring plans and lifting support. Analysts who spoke to Al -Sharq said that the response of shares in the sectors of petrochemical, cement and food – which came mostly negative – was “temporarily”, pointing out that the decision came within a plan by companies that have learned two years ago since the launch of the industrial sector competition program. “The petrochemical sector mainly suffers from problems in the aspect of demand, and an increase in costs can not be about 1% to have the greatest influence on the results of the businesses’ business, and in the event of improving demand and enterprise’s policies in the use and diversification of energy sources, it will be the sustainability of its business, according to Isaac Ali, Winveron, increase. The market will monitor the performance of the cement sector stocks, especially the ‘Yamamah Cement’, after the share fell by more than 6% last Thursday, despite the company not affected by the decision to increase diesel prices, as most of the sector companies did not depend on it, according to Ali. “Tassi” achieved the best weekly performance during the month of Ahmed Al -Rasheed, a first analyst in the newspaper “Al -iqtisadiah”, who is expected to see the beginning of the current weekly sessions to 4 consecutive climbing sessions, leading the “Tassi” index at the highest levels in a month, to the best weekly action a month, almost 2%. However, attention is expected to be addressed to Aramco’s share in improving oil prices, which exceeded the $ 76 level for Brent. Investors will also put their eyes in the banking sector with the “Tassi” index that approaches the most important resistance levels possible, the password to break the cross movement, which continues since the beginning of the second half of last year. The continuation of the increase can be supported by the strength of the dollar and expectations to achieve more profits during the current year, especially with the Association of the Riyal with a fixed exchange rate with the dollar, and therefore invested in Saudi stocks compared to most worldwide currencies. The Wall Street banks expect a further increase in the green currency in the short term with the entry into force of the president, while a number of institutions predict that the dollar will reach an equal point with the euro. At the same time, although businesses are preparing to announce the results of the fourth quarter of 2024, attention to the construction sector will apply with expectations to reach 24% growth rates on an annual basis for revenue, while Al -Rajhi Financial expects the quarter wins to rise by 97% annually. A recent research note from the business, seen by Al -Sharq, expected the healthcare sector to benefit from low -extraction rates of services, and the ambitious expansion plans of companies, to support growth during the last quarter of last year.