Market downturn likely temporary amid strong earnings, says analyst
Financial analyst Abdullah Al-Jubaili says the market index decline may be short-lived as companies, especially blue chips, continue to post strong results.
Financial analyst Abdullah Al-Jubaili suggests the recent market index decline could be temporary. He attributes the drop, which amounts to around 300 billion in fund rotation or approximately 3.3 billion riyals daily, to existing funds being repositioned rather than new liquidity being injected. This is akin to adding another stock market to the US market.
Al-Jubaili notes that while the Saudi market has seen a recent downturn, investors seem reluctant to sell at current prices, opting instead to hold onto their positions. He believes most traders view the current situation as short-lived, anticipating new opportunities to emerge. Consequently, any forthcoming market uptick is expected to see average liquidity levels surpassing the present figures.
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