The Saudi Stock Exchange still drains its profits amid poor trade

The Saudi stock market continued today, Wednesday, amid poor trade and a semi -collective decline in the sub -indicators of energy leadership. She barely breathed out of the wave of losses due to the results of disappointing companies, until they were again under pressure due to the return of the tension in the region and the pessimistic expectations of oil prices. The “Tassi” index dropped the second day after the 3 -session rise, by 0.7% lower to 11709 points. The market has continued its downward path since mid -February, and abandoned all its profits achieved this year to achieve a 2.4%decline. “The one that prints the Saudi Stock Exchange is the news associated with the commercial wars that put the total world markets and oil prices under pressure.” Israel also announced yesterday and launched attacks on targets that he said was attached to the “Hamas” movement, in a step that threatens to undermine the fragile ceasefire in Gaza. Residents in the strip reported that Israeli aviation has launched several raids on different parts of Gaza. Poor liquidity, the Saudi stock market, continued its poor trading during the Wednesday session as the circulating value reached 4.558 billion Riyals, without registering a significant improvement in liquidity levels. This comes in the midst of the absence of clear incentives that drive investors to pump more money into the market. Ahmed Al -Rasheed, the first financial analyst in the newspaper “Al -iqtisadiah”, said in an interview with “Al -Sharq”: “So far, liquidity has not seen a major improvement, perhaps as a result of the absence of clear incentives leading to investors, the financial results were not more than the expectation. liquidity to pump. ” “Aramco” shares, under pressure, the focus today on the arrows of “Aramco”, which still dropped the third day in a row and reached the lowest level in five years. The share today fell 2.15% to 25.05 Riyals, amid fear that the company’s revenue is constantly affected by the decline in production of maximum energy and the decline in world prices. External factors significantly affect the energy export companies, especially during periods with high uncertainty. In light of the lack of clarity on the effect of customs tariffs, some of which have begun to apply, while others will begin early next month, the foggy of the future of the markets will increase. Al -Rasheed is of the opinion that this manure “influences the demand for oil and petrochemicals, which leads to companies discussing their expectations.” Nevertheless, “This does not necessarily mean the decline in the prices of these businesses as they still achieve strong profits and maintain strong financial centers, as well as their continued ability to distribute profits, which has helped the cohesion of their share prices.” Bloomberg collected data over the past week that Aramco is preparing to deliver the lowest amount of oil to China for at least ten months, and the company will send 34 million barrels loaded to its customers in Beijing, the largest oil director in April, compared to 41 million barrels in March. Saleh Yilmaz, oil analyst at Bloomberg Intelligence, is of the opinion that the continuation of the need for production cuts within the “OPEC+” coalition of Aramco production in less than 9 million barrels per day, a major difference of its maximum capacity of 11 million barrels per day. Oil prices were again under pressure today with the fall in the price of Brent -RU (May contracts) to below $ 70 a barrel, and the US Western Texas -RU (April contracts) dropped to $ 66.25 a barrel. As far as oil prices are concerned, Goldman Sachs has reduced its expectations for Brent -Ru price to a range of $ 65 to $ 80 a barrel. Dan Streffen, head of the bank’s commodity research, said they no longer consider $ 70 as the minimum prices, despite their expectation that Brent is left in the coming months. The overview comes after similar discounts from “Morgan Stanley” and “Bank of America”, which expects prices to stabilize in the higher range than $ 60 during the second half of the year, while “City Group” and “JP Morgan” suggested that they end the year at the lowest or middle range of $ 60. Even large oil dealers such as “Vitol” and “Gunfor” have reduced their expectations.