The Saudi index recorded an increase of 158-point last week, a 2.24 percent, driven by the positive atmosphere and general optimism after authorities resumed economic activities in the Kingdom and eased measures imposed to curb the spread of COVID-19.
Over the past two days, the Saudi stock succeeded in reducing the severity of inflation of some indices, as the market recorded strong gains during eight consecutive trading sessions.
This indicates that it is possible for the operations to gain profit which will, in turn, drive the index upwards targeting levels beyond last Sunday's record.
The Saudi index closed this week’s tradings on levels above 7200 points, supported by strong gains achieved on Sunday and Monday.
Saudi stocks will start Sunday the week’s trading amid expectations that the index will maintain a level above 7129 points.
Meanwhile, the period for the listed companies to announce their financial results ends on June 22, as the performance of listed companies varied. About 90 companies are expected to announce their financial results soon, which will affect the general performance of the market index.
Until now, 108 companies have announced their financial results for Q1 of 2020, which saw an improvement in the financial performance of 57 companies.
Meanwhile, oil prices did not affect the Saudi market during the past few days. Brent crude recorded levels of $40 a barrel for the first time in three months, however, the Saudi index fell by about 70 to 80 points.
Saudi stock continued its positive performance despite the oil price crisis, which will soon end. However, the effect of OPEC and OPEC+ meetings remains a stimulus that will benefit the market especially with the agreement to extend oil production cuts.
OPEC, Russia, and allies agreed on Saturday to extend oil production cuts until the end of July, prolonging a deal that has helped crude prices double in the past two months by withdrawing almost 10 percent of global supplies from the market.