Tadawul: Investors seem over pessimistic

14/12/2014 05:55 AST

The Saudi stock market continued its downward spiral and fell for a sixth session on Sunday as investors seem over pessimistic due to oil price anxiety.

The Tadawul All-Share Index (TASI) lost 274.8 points or 3.27 percent to close at 8,119.08 points, after being low as much as 4.16 percent just after the Sunday’s opening bell.

Commenting on Tadawul's decline Tazeem Anwar, senior financial analyst at Zughaibi & Kabbani Financial Consultants, Jeddah, said: “ Despite a loss of hundreds of millions dollar of oil revenues a day, the Organization of the Petroleum Exporting Countries (OPEC) has decided to maintain its current levels of production. Perhaps, the OPEC’s strategy is to keep a market share, to compete with U.S. shale production or to balance the oil market. Crude oil prices also fell to their lowest levels in five years on concerns about oversupply in addition to OSPs (Official Selling Price) discount. The situation directly impacts Saudi equities to dump in a consecutive manner. The benchmark TASI’s entire gains of 2014 have been vanished even turned to negative after this oil reality”.

However, the sectoral indices trimmed an aggregate of 4,552.8 points. Tourism, Industrial Investment and Multi-Investment sectors posted the largest losses, slipping 7.96 percent, 6.84 percent and 6.04 percent respectively.

The market breadth confirmed a bearish momentum, as out of 163 stocks traded Sunday only 7 managed for gains.

United Cooperative Assurance and Al Sagr Co-operative Insurance suffered worst of Saudi equities, each dipping by 9.9 percent for the session. Three stocks including Saudi Mobile Telecommunications Co. (Zain) hit a fresh 10-year low.

Saudi Electricity Co was major decliner among heavyweight stocks, turning down 4.44 percent to SR 15.1. The market leader SABIC (Saudi Basic Industries Corp.) and Al-Rajhi Bank also dipped to a new five-year low.

Most of the trading was concentrated in Alinma Bank with 41.1 million shares, capturing 16.1 percent of Tadawul volume. It also maintained a heavy flow of liquidity SR 833 million, a relative market share of 11.7 percent. But the bank fell 4.86 percent, closing at SR 19.99.

Roughly 256 million shares worth SR7.1 billion changed hands on the Saudi stock market. The 50-day average for trading volume is closer to 233 million shares.

GulfBase.com