00:00 We will discuss the effects of this session today in the Saudi market with my guest, Mr. Imad Al-Rashid, a member of the Saudi Economic Union.
00:09 Welcome, Mr. Imad.
00:11 Why does the market continue to decline?
00:14 Is it true that we use the expression "profit genie" for what is happening today in the Saudi market?
00:21 Yes, Mr. Saakash, you are right. The reality is what is happening in the Saudi market and the rest of the world's markets. Today, the whole world is afraid of the subject of inflation.
00:32 Of course, the stock market, which I consider to be a project stock, was talked about by people since the beginning of the year, and since last year, almost, since the beginning of the US federalism, in terms of profit margins.
00:46 Today, I expect that the markets have already discussed this subject, but the barrier remains today that the growth rates in the world's economies are considered a kind of greed and do not achieve ambition.
01:00 With the knowledge that, as we have seen today, your growth is due to the reduction of production, and I expect that there is an increase in demand, which has a role to positively reflect the growth in the world's economies, especially in India and China.
01:15 But most countries in the world, if we follow the black of Europe, the black of the US, the black of Asia, all of them today have this body of economic collapse and recession that is happening these days.
01:29 The Saudi market, which is characterized by growth, a reduction in unemployment, government spending, and in a positive way through projects that have helped a lot of companies that have contributed and non-contributed companies that are not listed.
01:45 But today, after we saw the rise in oil prices exceeding $92, there is no relative link between the stock markets in the region, and specifically in the Saudi market, and the rise in oil prices.
01:59 Everyone was talking about the relationship between the rise in oil prices and the rise in the markets.
02:06 But today, everything that is happening, and in response to your question about the 4-pound oil price, everything that is happening, what I am seeing, is not due to anxiety or danger.
02:15 Today, the Saudi market, as we say, has fallen from 11,800 to 11,100, or even if it fell below 11,000, it is a kind of psychological barrier.
02:26 But the real market is not shaking. Today, if we notice the amount of trading, it is starting to rise and fall, sometimes to 6.5 billion, and sometimes it goes down to 3-3.5 billion.
02:40 But at the time of the bid, we see, God willing, that these books are 300% and 700%
02:55 This shows that the market is not suffering from a psychological barrier, but there are psychological factors.
03:01 Many investors and shareholders, when they see the markets of the neighboring markets, the rising and the falling, they start to have a kind of anxiety.
03:11 But, frankly, this anxiety does not go away if the shareholders are very confused.
03:16 Let me go to the news of some companies and their shares' reaction. You have the STC, today there was an announcement in accordance with the existence of a market maker,
03:27 a market maker, a financial sportsman, with some conditions. The share is now 1%. Is it necessary to react to this news or is there no link?
03:37 Usually, some news are negative or positive effects on the share, but some news are minor.
03:49 It has no such effect. In addition, the share of Saudi Salaat is linked and is not a large share in the Saudi market.
03:58 It is one of the shares that are linked to the market and the performance of the Saudi market.
04:03 Today, since the indicator is more than 220 companies, it is about 60% or 70%, we cut the share.
04:10 It is natural that all leading companies are reflected.
04:15 We noticed that in the last period, the market maker did a balance process between raising the shares and reducing the loss.
04:21 For example, the leading companies, like the previous one, have seen some high shares, so that there is a balance in the indicator process.
04:30 Because if all the big shares are reduced or the general indicator is heavy, we can see that it may drop 200 or 300%.
04:38 But in fact, the market maker is grateful for the professional performance in recent years.
04:43 Specifically, in the last 7 or 8 years, we have started to see this change in dealing with the general indicator.
04:49 Because the general indicator has developed and is increasing with the market.
04:54 The last question, and if you allow me, is about the sharing of the shares that some of the shares have seen.
05:00 Did it affect the entry of these shares or not?
05:03 It has become easier and more convenient.
05:05 We have seen that some of the shares have not moved since they were shared.
05:10 And some of the shares were very small or relatively weak.
05:15 Of course, this is the scenario in all the world's markets, the shares whose prices are huge.
05:21 For example, if a share is worth 1000 Riyals, and it is increased to 100 or 90 Riyals, if the price is 900 or more, I see it acceptable.
05:31 But if a share is worth 100 Riyals and it is reduced to 10, the shareholder in the Saudi market is very smart.
05:37 He knows that this value does not mean anything, it is just a year of profit.
05:43 Instead of buying one share, he buys two.
05:45 This may have an effect. But a share worth 50 Riyals and half a Riyal or 5 Riyals,
05:51 we have not seen its profit yet, and we have seen many of the shares, unfortunately, do not interact.
06:00 Thank you for your time and analysis, my guest, Mr. Imad Al-Rashid, and you are a member of the Saudi Economic Union.
06:06 Thank you.
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