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00:00 We will stop discussing this week with a further analysis with a guest from Riyadh, Dr. Abdullah Ba'ashin,
00:05 the head of the Team One board of directors for consultations.
00:08 Welcome, Dr. Abdullah.
00:10 I will start with the reviews, which may have exceeded our expectations,
00:16 1.5 points at the end of the session for today.
00:20 Why is the market reacting negatively, despite the fact that we have a good set of business results?
00:26 I would like to mention that the previous speaker mentioned the losses,
00:30 and there is a power in the weight of the percentage on the index,
00:34 which is also today falling by more than 7%.
00:37 Hello, Bayissa and the viewers.
00:42 Rula is with you today.
00:43 Rula, Rula, I am happy to be here.
00:46 Thank you all.
00:50 My dear, it seems that the markets have taken the same approach as I did.
00:59 The market has become a competitive market.
01:06 Why do I say that?
01:09 Because, as you said, if you look at the results of the companies,
01:13 especially the results of the S&C yesterday,
01:17 which were good, and before that, of course, the banks,
01:22 even Aramco, despite its decline,
01:24 is still the largest oil company to achieve high revenues.
01:29 It has become, and there is also Bowa.
01:32 If you look at these real quantities, which are the largest weight in the index,
01:42 you will find that their results are almost consistent with the economic conditions,
01:48 with all other factors from the political sphere,
01:51 and also with the momentum of the global economic growth.
01:56 But I think the trend now, as you can see,
02:01 is to the fast and light moving stocks.
02:06 This may give me a clue as to why the foreign exchange rate,
02:12 or the other rate in the Kingdom, is about six times that of the exchange rate.
02:17 Yes.
02:18 I am going to the values today, which have reached 7 billion Riyals.
02:22 We have become used to this in the daily average.
02:25 Are we convinced that the values of the exchange rate will be this much in the announcement of the results?
02:32 The real values are what affect the movement of the stock market.
02:39 I have the movement of the stock market, I have the results of the currency,
02:42 and I have the behavior of the exchange rate.
02:45 The values and behavior of the exchange rate are the dominant now,
02:48 and this led to the trend of the index to decline.
02:54 I do not think that the values are satisfied now,
02:58 because the market has more than 250 companies.
03:02 If there were 50 or 40 companies,
03:04 it is possible to measure this number as a percentage and a proportion.
03:09 But if we look at the amount of criticism in the Saudi economy,
03:15 we will find that by the end of March, it is about 3 trillion.
03:18 This means that it is heading to alternative investments
03:22 more than it is heading to the market,
03:26 especially since the temptations in other products,
03:31 such as the process of special offer, acquisition,
03:35 and commercial activities,
03:39 may be more tempting now than the process of the black market.
03:44 In addition, of course, to the deposits.
03:46 Let me go back to the relations,
03:48 and I do not know if it was psychological or real,
03:50 and above all, I start with the tensions.
03:53 What is happening in the Middle East
03:56 behind the recent negotiations on the ceasefire,
03:59 and the entry of parties to solve the situation?
04:03 The tensions are related to oil offers and oil supplies.
04:07 To what extent is the Saudi market far away from what is happening today?
04:11 Or maybe Egypt?
04:12 Today we noticed that the effect was more obvious on the Egyptian stock market.
04:16 The subject is not a geographical issue,
04:19 but rather a clear separation between the independence of the economy
04:23 and what is happening in foreign influence.
04:25 This is a very good point.
04:30 But the fact is that the links here in the markets,
04:34 do not forget the Middle East region in particular,
04:37 and the intermediaries,
04:39 and let me say again that their psychology,
04:42 which is part of their behavior,
04:44 has become accustomed to reality.
04:46 The political situation in the region
04:49 has been about seven or eight months,
04:52 and our people in Gaza are asking about it.
04:56 It has become like a normal conversation.
04:59 The process is waiting for agreements to be reached,
05:03 and if there are no agreements.
05:05 Therefore, I do not think that the markets,
05:08 or even let me tell you that the people who live in this region,
05:12 have become all life is a life of following,
05:16 and they live this tension.
05:18 So, we need to find a new way to link it to the economy.
05:21 We will find that the economy flourishes in such cases,
05:25 as happened in the days of the invasion of Kuwait and other events.
05:29 So, as they call them, the war merchants, if you allow me to say this.
05:34 Exactly, as happened the war merchants.
05:36 Yes, and if you look at every country in the Arab world,
05:42 or in the Middle East,
05:44 you will find that in the last two decades,
05:47 the war merchants flourished, not the economies of these countries.
05:51 I return with you, Dr. Abdullah, to the season of announcing the results.
05:54 How satisfied are you with what we have heard so far?
05:56 Is it in the circle of expectations, or were there surprises?
05:59 And do companies justify their results if they were given a loss,
06:03 or profits are regarded?
06:05 Is it convincing for people who are active in the market
06:09 and read a lot between the lines?
06:11 Look, Rula, it is convincing for strategic investors,
06:18 and I know that the investors are the most difficult to get wealth,
06:22 especially when looking at STC, Aramco, or others, or the Broke.
06:28 But in reality, in the trading in the Middle East,
06:33 and in the Saudi market, especially,
06:35 and it is a very strong competitor,
06:38 this does not mean anything to it.
06:41 And we are now in a week of almost complete results.
06:45 We found that the indicator did not give any satisfaction or anger.
06:50 It went in the way that I think it should go,
06:55 which is to preserve the 12,000 points.
06:59 Therefore, I believe that we can call on the markets that have money,
07:04 and without a doubt, not only Al-Rashid,
07:07 as it is in the Arab markets.
07:09 Thank you, Al-Rashid Al-Aniq, Dr. Abdullah Ba'ashen.
07:15 You are welcome.
07:16 And you are the Chairman of the Board of Directors of CIMON Consulting.