Aramco shares rose 2.6% to 31.3 riyals in today's trading and transactions, in order to support the rise of the Saudi stock market index 1.7% to the levels of 6710 points, with transactions exceeding 4.4 billion riyals.
In a related economic context, this came despite the pressure of the Corona pandemic on the world and regional markets. The Saudi stock market remains at levels near 7000 points, while analysts believe that the strong resistance level remains above 6000 points for the market.
All sectors of the market increased today, except in the travel, entertainment and luxury goods sectors.
Likewise, all shares increased by 173 compared to 15 declining ones today. The energy sector rose 2.5%, the banking sector rose 1.5%, and the telecom sector rose 1.5%.
SABIC rose to approximately 71 riyals, and today is the last day of the right to Qassim Cement Company. Al-Rajhi and Samba shares rose by more than 2%, in addition to gains of more than 4% for Telecom and Mobily.
In this context, a member of the Saudi Economic Association, Walid bin Ghaith, spoke in an interview with "Al-Arabia" that the side of the oil supply has become clear, but the demand side remains, and the picture has begun to become clear to producers who need to arrange their production lines to reduce.
He added to the start of the impact of the OPEC Plus agreement, on the oil markets, and the trend towards more coherent oil prices, and this will affect the financial markets.
On the one hand, he stressed the continuation of the problem of defining the deflation that occurred in demand, and the continued blurring in determining the value of the targeted stocks.
On the other hand, he described the current price levels as difficult to justify, indicating that the fair value is based on the cash flows of the stock, and therefore the markets are looking for this fair value.
He added that the prices are exaggerated and the market is trading at profitability repeaters 23 times for the profits recorded in the previous 4 quarters.
On the one hand, Bin Ghaith expected that the profitability repeater will rise and consequently the stock prices will be more expensive, but he stressed that the fundamentals will be reflected in the market even if the time for this reversal takes long.
He pointed out that speculation is temporary and will not be prolonged, expressing his fear for small traders from engaging in daily speculations at prices that are difficult to justify their levels.
He emphasized that the Standard & Poor's 500 US stocks index has declined by about 12% since the beginning of the year, while the Saudi stock market index has declined by 20%, but he cautioned that Saudi stocks entered this year, at very high prices.
In a related development, the financial results announced in the Saudi stock market, the profits of the National Medical Care Company increased by about 11% in the first quarter of this year, compared to the same period of last year to reach about 33 million riyals, and the company's shares rose 6% among the most Up in session.
The company revealed that the reason for the increase in profits is mainly due to an increase in revenues of 9% to 195 million riyals, with a decrease in provisions for expected credit losses.
For its part, the Arab Monetary Agency in the Kingdom of Saudi Arabia affirmed the strength of its foreign exchange reserves and its ability to meet all the requirements of the national economy from foreign currencies, covering nearly 43 months of imports and 88% of the expanded monetary block (N3).
Likewise, the corporation reaffirmed its commitment to the policy of linking the riyal exchange rate to the dollar, and maintaining the stability of the exchange rate at 3.75 riyals per dollar.
Yazin Abdin, CEO and Fund Manager of Abu Dhabi Investment Management Company, showed and demonstrated in an interview with Al Arabiya that calculating the period in which foreign reserves are sufficient for any country to meet imports depends on revenues versus expenses.
In the event of any budget deficit, the available options are to resort to reserves or borrow.
The Kingdom of Saudi Arabia has confirmed that it will increase what it intends to borrow this year by 100 billion riyals, to increase to 220 billion riyals.