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Saudi Stock Value Market Exceeds $2.13 Trillion

Saudi Stock Value Market Exceeds $2.13 Trillion

Tuesday, 19 May, 2020 - 10:15
Investors monitor a screen displaying stock information at the Saudi Stock Exchange (Tadawul) (Reuters)
Riyadh- Shujaa al-Bogmi

The market value of Saudi stocks exceeded $2.13 trillion dollars driven by 200 points increase in the market index, as a jump in oil prices and positive corporate earnings from the banking sector boosted the stocks.

Saudi Aramco closed at 1.3 percent at 32.35 riyals above its initial public offering price of $8.6, for the first time in 70 days.

The shares of 138 listed companies closed positively on Monday and cash liquidity jumped to levels close to $1.36 billion registering a 27-percent increase compared to Sunday.

Saudi Arabia's index surged 1.4 percent, a 96-points increase, amid active trading compared to the previous sessions.

Meanwhile, about 80 Saudi companies listed in the local market announced their financial results for Q1 of 2020, with 44 companies recording an improvement in their performance, compared to 36 companies that have seen a decline.

The remaining 100 companies are expected to announce their financial results soon, which will affect their shares during the announcement period.

Oil prices climbed on Monday, supported by output cuts and signs of gradual demand recovery amid easing coronavirus curbs and resumption of economic activity.

The booming oil markets also influenced the Saudi stock, as Brent crude jumped 6.1 percent at $34.49 a barrel, while Nimex had a 9 percent increase, exceeding $32 a barrel.

Notably, Saudi index is approaching the 7000-point barrier as traders hope that the market index will exceed this barrier before closing for Eid el-Fitr, backed by the oil prices, given that they improve or maintain the same current levels.

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