The CEO of Mikyal Financial Technologies, Hisham Abu Jameh, said that the rise in oil prices helped the cohesion of the Saudi stock market, and that it was not affected by the collapse of global markets that occurred on Friday.
Abu Jameh explained, in an interview with Al-Arabiya, that the components of the Saudi market differ from some other markets, noting that the majority of the market is concentrated in the banking sector, which affects the Tadawul index, as well as in shares such as Aramco and SABIC.
He added that oil is a very important factor in influencing financial marketsespecially in light of the great unrest around the world.
He pointed out that the oil markets are monitoring developments in Libya, developments in the Iranian nuclear agreement, in addition to the continuing repercussions of the Ukrainian crisis.
He stated that these factors support the continuation of oil prices above the level of $100 per barrel, which are the levels that OPEC aspires to.
The Saudi stock market showed cohesion in trading today, Sunday, in light of occasional movements, to maintain the level of 12,500 points, despite the strong decline of global markets last Friday’s session.
The main market index (TASI) decreased by 0.52%, or 65 points, at 12526 points.
The value of trades amounted to 5.8 billion riyals through trading about 137.7 million shares.
The prices of 84 shares rose, led by “Gas” by 9.89%, compared to a decline of 118 shares, led by “Tihama” by 2.5%, among 217 listed companies.
The most active stocks in terms of trading value were issued by “SABIC Nutrients”, Ma’aden, Al-Rajhi, and “STC” stocks, while Dar Al-Arkan, “Ma’aden” and Petro Rabigh were led by the trading volumes.
Wall Street fell on Friday, closing significantly lower, as investors who wanted to adopt lower interest rates were disappointed with Federal Reserve Chairman Jerome Powell, who indicated that the US central bank would continue to raise interest rates to curb inflation.
And the Standard & Poor’s 500 index closed 140.83 points, or 3.35%, to 4058.29 points, the Nasdaq Composite Index fell 496.39 points, or 3.93%, to 12142.88 points, and the Dow Jones Industrial Average fell 1003.74 points, or 3.01%, to 32288.04. a point.