Complex Made Simple

Saudi Tadawul index re-captures 7,100-level, Jadwa believes year-end 8,050 possible

The Saudi Stock Exchange's market measure TASI gained 0.51% Tuesday, closing at 7,104.24 points, as oil prices stabilised between $94 -$95 per barrel (U. S. crude). According to Paul Gamble, Chief Economist and Head of Research at Jadwa Investment in Riyadh, the recent fall of Saudi shares was mainly due to global factors. "The TASI is down by 10% since the end of March, mirroring falls on global markets, which have been unnerved by weaker economic data and a heightening political backlash against austerity in the Eurozone," Gamble said in his monthly comment on the Saudi market published earlier today. Market breadth ended almost in a reversal to yesterday, as 115 shares advanced and 24 declined. All sector indexes landed in the green. Allianz Saudi Fransi Cooperative Insurance Company gained the most, closing 9.83% higher at SR95. It was somewhat paradox that market bellwether Sabic, the petrochemical giant, could not join the rebound and fell a quarter percentage point to end at SR96.25. Regarding further developments, Jadwa's Paul Gamble remains optimistic. "Net income of all listed companies in the first quarter was SR25bn, an increase of 14.9 percent year-on-year (...) We maintain our end-year projection for the TASI of 8,050."