What moves the Saudi stock market? An expert answers

In an interview with Al-Arabiya, Hisham Abu Jamea, CEO of Mekial Financial Technologies, ruled out the transfer of liquidity from real estate to the Saudi stock market.

Abu Jameh said that there may be some exit from the debt markets, some of which tend to specific opportunities in the stock market.

He continued, “The debt market, during the last period, has withdrawn a lot of liquidity, whether in deposits, murabaha, or sukuk… I believe that if opportunities are available, liquidity will be provided from the debt market, not from real estate.”

He explained that the daily trading in the stock market increased to about 6-7 billion riyals as a result of speculation and the majority of liquidity in medium-sized stocks, as we witnessed increases for some of about 70, 80 and 90% in a short period.

He pointed out that most of the investments go to speculations in medium-sized companies, which explains the rise in the “TASI” index by 12% since the beginning of the year, while the index of the 30 largest companies in the market rose by only about 6%.

He added that the real estate market has been suffering in the past period due to the high interest, explaining: “The interest on real estate is very high, and in the best case it amounts to 5-6%, and it is cumulative, but the demand for real estate will continue.”

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