The head of research at Al-Rajhi Capital, Mazen Al-Sudairy, said that the Saudi stock market witnessed, in the last 5 days, the “Sera” stock topped the stock with the most returns, achieving returns of 15%, while calculating the gains on Tuesday.
Seera’s stock soared. By 1.4%, at a price of 20.28 riyals, with transactions amounting to 111.25 million riyals, after announcing the desire of the Public Investment Fund to own 30% of the Al-Mosafer Company affiliated with “Sera” in return for paying about 1.55 billion riyals in a subscription to increase the capital of the Al-Mosafer Company.
Mazen Al-Sudairy said in an interview with Al-Arabiya that some stocks in the Saudi market that are not related to the high fluctuation in oil prices recorded the best performance during the last 5 days, namely “Tanmia”, “Al-Drees” and Budget.
He added that the end of last week witnessed some pessimism, but the market dealt with the situation and rose in the last 3 days.
Al-Sudairy explained that the petrochemical sector suffered a decline and that most of its companies were the worst performers in the last 5 days due to the sector’s correlation with oil prices.
The head of Al-Rajhi Capital Research said that the rise in gas prices in Europe and America during the last 3 weeks was reflected in urea prices faster than on gas prices, and therefore urea prices jumped by about 20% during the past week, which affects companies such as Ma’aden, Sabic Agricultural and Safco .
Al-Sudairi expected the euro’s prices to continue to rise until the end of the current year, and to return to decline after that.
Regarding the expected interest rates from the US Federal Reserve, the head of research at Al-Rajhi Capital said that the Fed rarely surprises followers with its decisions.
He added that the markets expect to raise interest rates by 75 basis points instead of 50 basis points, according to expectations before the speech of Federal Reserve Governor Jerome Powell.
He explained that the Saudi market is part of the world, and by the end of the year with more than 4% increase in interest rates, there will be another matter for the Saudi riyal, but so far the market expects interest rates to reach 3.5%, 3.75% by the end of this year.