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Saudi Stocks Achieve Positive Monthly Closing

Saudi Stocks Achieve Positive Monthly Closing

Sunday, 28 June, 2020 - 11:30
: An investor following the Saudi stock market index (AFP)
Riyadh - Suhjaa Bogmi

Saudi Stock Market trading has recorded profits that contributed to a decrease in the market index by 1.7 percent on a weekly basis, following five weeks of gains.

The market index reversed its weekly trend of decline after rising for five consecutive weeks to close down by 1.7 percent, equivalent to 123 points, ending its transactions at 7,232 points, compared to the previous week’s closing at 7,356 points.

The value of the total trading during this week amounted to about SAR23.38 billion ($6.23 billion).

However, this did not push the market index to close below May’s closing levels, which increases the probability of maintaining a “positive” market index in a monthly range.

The market closed at 7,213 points in May amid hopes by traders that the market index succeeds on Tuesday to record a monthly closing above those levels.

In this case, the “positive” monthly closing would support the chances of the market index to remain above 7,200 points, leading to new highs.

This comes as the Kingdom began easing restrictions on movement and travel more than two months after stringent measures were introduced to help curb the spread of the novel coronavirus.

Meanwhile, companies listed on the Saudi stock market will begin announcing their financial results for the Q2 2020 on Wednesday.

This comes as the listed Saudi companies in the local financial market gained net profits amounting to about SAR76.3 billion ($20.34 billion) during Q1 2020.

The profits are considered very logical in light of the impact of the coronavirus pandemic on global economies.

Although the net profits achieved by the listed Saudi companies have seen a decline of about 26 percent, compared to Q1 2019, yet traders are expecting better profits during Q2 2020.

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