Amazon Special Report
Team Setup
A year has passed with global events and developments that have affected the performance of financial markets, such as the fluctuations of oil markets and the trade war between China and the United States of America, and political disputes within and between countries < / p>
Faced with this state of instability, the Saudi market managed to achieve gains of more than 8%, recording its best performance in five years, as the index closed at 7827 points And the market value jumped to 1.85 trillion riyals, with a growth of 10%, equivalent to 169 billion riyals.
These gains are the result of reforms and measures that have stimulated investment and boosted the size of liquidity, and perhaps the most important historical stage in the agenda of the Saudi financial market is manifested by its joining the FTSE Russell and Morgan Stanley Markets indexes. Emerging, which enhances the liquidity of the market and attracts investments of no less than 150 billion riyals, in addition to diversifying the investment base of the market, and the orientation towards institutional investment that serves the economy in the long run
The decision to include the Saudi market for global emerging market indices was the result of comprehensive changes and reforms adopted by the Capital Market Authority, including permitting entry of sales and purchase orders outside the limits of daily volatility and launching a market. For financial derivatives, amending the mechanism for determining the market closing price, regulating government debt instruments, and encouraging foreign investment by reducing the requirement of assets that it manages or owns by 50%. Accordingly, the market witnessed a change in investor categories, as the institutional investment share grew for the fourth consecutive year from 86.5 % In 2015 to 88% in 2018, as a result of the decision to raise the allocation rate The institutional investor in the IPO to 90%
These moves are part of the market’s endeavors to reserve a position in the global market, as it is ranked 24th in the world in terms of market capitalization and 13th on the level of trades.
Positive results for the banking sector in the Saudi market
Regarding the results of the companies included in the Saudi market, the combined profits of the listed companies reached 96 million riyals, and 24 companies recorded an increase in their profits, while the profits of 13 companies declined, and incurred three Loss companies during the past year 2018, and the decline by large proportions dominated the performance of companies from the industrial sector in the first place, as the profits of Saudi Pipes, Hail Cement, Yamamah Steel, and Saudi Electricity decreased by 972.92%, 251.50%, 119.36%, 74.15%, respectively, while The company has made o ...
