The general index of the Saudi market fell by 1,300 points during only 10 trading sessions, to lose the main market regarding 9.5% of its value during the trading of the past two weeks, affected by the profit-taking of the leading shares.
and comes Saudi stocks fell during last week’s trading, After it recorded the largest decline during the previous week since October 2020, as it was affected by the performance of the leading shares, specifically the shares of banks.
The decline of the local market coincides with the decline in global markets and the trend of central banks around the world, to raise interest rates to counter inflation, according to Al-Eqtisadiah newspaper.
The US Federal Reserve raised interest rates at the beginning of this month by half a percentage point, the largest increase in 22 years.
Although the general index declined significantly during last week’s trading, the “TASI” index still maintained a gain of 10.2%, compared to what it was at the end of last year.
The market lost regarding 594 billion riyals ($254.4 billion) of its market value, to reach regarding 11.88 trillion riyals, compared to regarding 12.47 trillion riyals two weeks ago.
The decline in the market value is due to the companies that have the most weight in the general index, as the 10 largest companies that make up the general index lost the equivalent of 476 billion riyals, representing 80% of the market losses.
The share of Al-Rajhi Bank, the most influential in the movement of the general index, fell by 15.3% during the week’s trading, to lose 67.6 billion riyals from its market value.
The decline of Al-Rajhi Bank, the largest bank by market value, has reduced its gains since the beginning of the year to 5.5%, while the stock is still up by more than 190 percent, compared to the prices of the bottom of Corona.
The market was also affected by the decline in the Saudi National Bank share by 11.7%, as well as “SABIC” following falling 9%, and Saudi Aramco shares also fell by 2.7%.
It is clear that investors took advantage of the “interest” news to reduce their holdings in bank shares and achieve market gains, especially since the majority of the sector’s shares are trading at a high repeater.
During the past two weeks, the Arab Insurance share topped the decliner among shares in the local market, following losing a quarter of its value by 25.9%, wiping 237.2 million riyals from its market value.
Al-Waha’s share also fell by 23.8%, recording a decline in its value by 322.5 million riyals, while the Arab Bank recorded a decline of 20.5%, which is the highest among the banks’ shares, declining in its market value by 10.8 billion riyals.
Also among the decliners, metals with 18.8%, as well as Bank Al-Jazira, fell by 18.2%.
On the other hand, Exports share topped the gains following it jumped 70.4% during the period, as the stock was able to face the collective market decline by rising by a maximum of 10% for six consecutive sessions at the end of Thursday’s session.
The earnings per share of “Saderat” came following the extraordinary general assembly’s approval to increase the company’s capital by 172.8 million riyals through rights issue.
The share of “Anaam Holding” also recorded a gain of 28.5%, and the rise also returns following the company announced, before Wednesday’s trading, the approval of the extraordinary general assembly approving the increase in the company’s capital by 210 million riyals through priority rights.
While the shares of Atheeb Telecom and Enaya Insurance, as well as Sulaiman Al Habib, recorded an increase in their market value of 10.2, 9.1 and 8.5%, respectively.