مؤشر تاسي السعودي يستعيد مستوات 12300 نقطة بجلسة الإثنين
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00:00Let's move directly to Riyadh, Mr. Mohammad Al-Omran, Head of the Gulf Central Bank for Financial Consultations, joins us.
00:10Mr. Mohammad, welcome to us and thank you for being here.
00:13Today, there is a movement around the level of 12,300 points.
00:17We have seen from the middle of the session that the market is trying to reduce it,
00:20but it is clear that the payment of the banks' movements today contributed in an essential way to the rise of the market,
00:26especially after the successful data that strengthened the share above level 80.
00:31Despite the references that we are seeing even for oil prices,
00:35how much will the announcement of the results, especially for the leading banks, support the market?
00:40In the name of God, the Merciful, the Compassionate.
00:42There is no doubt that the financial results are the focus,
00:46and specifically the leading companies, and among them, of course, the banks.
00:50Today, we consider it Bank Day, because the biggest banks have almost announced,
00:54and therefore, the initial picture of the overall profits of the banking sector has greatly increased
01:02after the announcement of Al-Rajhi Bank, Al-Ahly Bank, Al-Riyadh Bank,
01:06Al-Arabi Bank, of course, a few days ago, also Al-Bilad Bank, and many other banks.
01:12In fact, all the results I see are more than wonderful.
01:15There is a very strong growth in the willingness of private currencies to improve their annual profits,
01:23although it is a kind of stability compared to individual profits.
01:27But the evidence in the matter is that there is also an improvement in growth rates,
01:32growth of assets, growth of funding, growth of investment, and also the subject of growth of deposits.
01:37The subject of financial specialties remains,
01:42perhaps about two or three banks had an increase,
01:46in fact, a surprise in the financial specialties,
01:49almost Al-Ahly Bank and Al-Bilad Bank,
01:52but the rest of the banks, we can say, had a kind of stability or a kind of reduction in the financial specialties.
01:58But if we ignore the subject of specialties,
02:02of course, the banks maintained growth rates more than wonderful,
02:07whether it was an annual growth or a separate growth,
02:10an improvement in the profits, and as we said, an expansion in its activities.
02:15But today, there is also a positive factor,
02:18that is, the support of the banking sector, we must not ignore,
02:21the subject of petrochemical companies,
02:24because the basic material sector today was also very strong,
02:28almost 3%, because in general,
02:32the results of petrochemical companies showed a kind of shy improvement,
02:37we can say, Yansab, Kayan, before them Sebkem, and other companies,
02:42and therefore, there is a lot of betrayal and risk that investors are facing,
02:49they bet that the petrochemical sector will improve,
02:54and therefore, today we saw very strong purchases in petrochemical companies,
02:59and therefore, it gave a strong rise to the basic material indicator,
03:03alongside, of course, the banking sector.
03:06We can say that these two sectors are the ones that supported the indicator today,
03:10and we can say that after four consecutive weeks,
03:13from the decline from levels above 12,800 to levels of 12,180,
03:21or 280, as you remember,
03:23today we really started to see the construction of a new, rising channel,
03:27we hope that it will be a strong channel,
03:29but of course, there is a primary indicator for buying,
03:33and therefore, we can say that there are obstacles,
03:36because the direction will be more certain if we penetrate the 12,500 in the coming days.
03:42We can say, Mr. Mohamed, that the bank sector profitability indicators
03:46have now become, and are still tempting now,
03:48to enter and purchase operations for the market,
03:51if we do not decide on the indicators of profitability as a whole?
03:57I do not want to talk about the subject of repetitions and assessments,
04:01because it is generally high,
04:03whether in the Kingdom or outside the Kingdom,
04:06but I think the biggest focus is on growth,
04:08there is very strong growth,
04:10and therefore, when there is growth,
04:12brokers mostly, or professional brokers,
04:15ignore the subject of assessments and repetitions,
04:18temporarily, at least, they demand that there is growth,
04:21and this growth is improving,
04:23and therefore, they take a bigger risk.
04:25If we look in general at the profitability of stocks,
04:28and the return it is giving compared to market prices,
04:31I am sure it is not encouraging, unfortunately,
04:34until this moment,
04:36the return that the bank gives on deposits,
04:39or on securities and bonds,
04:41is much higher than the return on shares.
04:43But brokers, professionals,
04:45they take a risk based on growth indicators,
04:48in the first degree,
04:50and how much this growth improves,
04:52because they try to buy things they see as cheap,
04:55depending on growth,
04:57and therefore, the subject of assessments and repetitions
05:00is temporarily ignored,
05:02because they are, as you know, hot funds,
05:04means hot money,
05:06it comes and goes,
05:08depending on their vision of the opportunity of growth,
05:10where it is, in which sectors,
05:12and in which companies,
05:14and therefore, they take their risk
05:16based on a very high level of growth,
05:18without temporarily ignoring, at least,
05:20the subject of assessments and repetitions.
05:22Okay, you talked about the petrochemical fight,
05:24that the investor started to think
05:26that there is some kind of improvement
05:28in the petrochemical sector, Mr. Mohamed,
05:30and this appeared, perhaps, in a competitive move,
05:32we see it on SABIC today,
05:34a good rise on SAHM and others,
05:36and also from Assom.
05:38On what basis is the investor building
05:40today the decision to improve the sector,
05:42in your opinion?
05:44A very nice question,
05:46because always the primary and competitive signs
05:48of the petrochemical sector
05:50is the improvement of economic conditions
05:52and industrial activities
05:54in Asian countries,
05:56China, India, and others.
05:58Therefore, the professional investor
06:00always monitors the situation in China
06:02and the developing countries
06:04in the Asia region,
06:06and on this basis,
06:08he is trying to do competitive actions,
06:10of course, there is a risk,
06:12but he is betting that
06:14as long as there are primary indicators
06:16to improve industrial activities
06:18and economic activities in general
06:20in China, Korea, India,
06:22and other things,
06:24he will try to buy
06:26the petrochemical companies
06:28in the United States,
06:30especially that this is in conjunction
06:32with an improvement,
06:34even if it is shameful,
06:36as we mentioned earlier,
06:38in terms of financial results.
06:40In general, there is an improvement
06:42in profitability,
06:44some of them reduced losses,
06:46but in general,
06:48from the reality of about
06:50four or five petrochemical companies,
06:52there is an improvement,
06:54even if there is an increase in sales,
06:56or if there is a reduction in losses
06:58or a turn to profit.
07:00The results are also related
07:02to the levels that we are seeing
07:04will enter the market.
07:06Mr. Mohamed Miah here today
07:08is also determining the price range
07:10between 10.5 to 11.5 Riyals.
07:12How much will be distributed today
07:14by the investment banks
07:16between the new levels
07:18and the focus on the companies
07:20in the new levels?
07:22There is no doubt that the interest
07:24of investors is very strong
07:26in the fact that they market
07:28primary securities,
07:30and therefore there is a large
07:32share, meaning they focus
07:34their activities on entering
07:36primary securities,
07:38because usually a better return
07:40is achieved for them,
07:42as long as the allocation is good
07:44and the price of interest
07:46after the acquisition is very high.
07:48Therefore, this has raised
07:50the interest of investors
07:52in the primary securities market,
07:54which is still very strong,
07:56and I think it will continue
07:58over the short term,
08:00at least with the same strength
08:02and not be stronger than before.
08:04Do investors share
08:06between the primary market
08:08and the secondary market?
08:10This may be present,
08:12but at the moment
08:14I think there is a kind
08:16of concentration,
08:18that is, some of them focus
08:20greatly on the secondary market
08:22and relatively ignore the liquidity
08:24in the market, unless it is necessary,
08:26if there is no allocation.
08:28For example, some liquidity
08:30is forced to be transferred
08:32to the secondary market,
08:34and some of them, of course,
08:36focus on the secondary market
08:38and do not enter the primary
08:40securities market at all,
08:42since it requires large amounts
08:44of liquidity.
08:46Of course, in the current situation,
08:48as long as the market is high
08:50and the primary securities market
08:52achieves great profits,
08:54of course, both sides will achieve
08:56profits, but of course relatively
08:58between investors and others,
09:00but the important thing is that
09:02the desire is very high to take
09:04the risk from both sides,
09:06as long as there is improvement
09:08and growth, as we said,
09:10in both cases,
09:12and in other cases,
09:14such as rising interest rates
09:16and others, which in fact
09:18is a large chip,
09:20they temporarily ignore it
09:22in light of the continuation
09:24of growth rates and high liquidity
09:26that support the risk-taking
09:28and thus enhance the buying process.
09:30We thank you, Mr. Mohamed Al-Omran,
09:32President of the Gulf Central Bank,
09:34for the financial consultations.
09:36You were with us from Riyadh.
09:38Thank you.