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00:00 We should not forget the half-year review we have watched for MSCI, which pointed to the inclusion of SAL as the world benchmark.
00:10 We have seen good moves for SAL, with two of them being close to 100.
00:16 We have seen that since the beginning of the year, SAL has achieved gains of over 40%.
00:21 The share price is still at 35x. So, SAL has jumped to 279% with more than 3%.
00:30 We have seen other shares like Cinema Retail, Kimenol, Saco, Almasafi, Riyad Rita, and Amla as small companies.
00:41 We have seen a sharp increase in the share price, and the share price is still at gains of over 4x.
00:46 There are also the development of Babteen, and the insurance companies, and the paper industry.
00:51 Avalon Pharma also performed well today with this inclusion of small and medium-sized companies.
00:57 We are asking about the market movements. We have with us Mr. Ibrahim Linwebet, the CEO of Qima Financial.
01:04 Mr. Ibrahim, welcome to our show, and thank you for being here.
01:08 The market movements are still wide, but to what extent? We are very close to breaking the 12,000 point level,
01:16 with the decline that occurred over several sessions.
01:20 What is driving the market at this stage, in your opinion, since we are approaching the season of announcing the results,
01:26 which will end on May 19th?
01:29 Good evening, Ms. Maysa, and to the viewers and listeners.
01:34 Indeed, the market is closer to support below 12,000.
01:38 12,000 is a psychological barrier, but there is no indicator of support at this level.
01:45 Visiting less than 12,000 may be more realistic and closer to the current market situation.
01:57 Waiting for the results and announcing them will give a clearer picture of the future of the market
02:04 and how the investor will deal with it in the future.
02:08 If we notice, the liquidity in the last two weeks was not as high as it should be.
02:15 We reached 6-7 billion at a time, and exceeded 10 billion.
02:21 This gives us an impression that the investor is still waiting for the results to be announced
02:27 to adjust his position to his investments.
02:33 This is always the case during the period of announcements, and is considered the normal stage at the moment.
02:41 We have also started to see this connection between the results of the business and the expectations.
02:52 The investor may wonder why this time between the results of the first quarter and the expectations for investors.
03:04 We may not have seen it before.
03:06 Are there specific reasons behind this connection?
03:10 This is a great question.
03:12 We may have seen a new situation in the market.
03:16 In my opinion, in the last two or three years, there is a new investor in the market.
03:21 It is different from the investor who was between two types of investment.
03:26 Either a small-cap company, which does not have growth, profits or returns,
03:33 or a long-term investor who waits for the companies to be distributed in a safe place.
03:40 Today, investors are facing a new situation, which is the entry into growth companies.
03:45 The impact of the PIF on the stock market was clear.
03:51 Many of the companies that were listed in the stock market previously were listed in an advanced stage.
03:59 It is difficult for these companies to grow.
04:04 The current situation may be different.
04:07 Many companies were listed in the stock market at a growth stage,
04:11 perhaps leading to a loss today.
04:13 The results achieved are very large compared to previous years and compared to their performance even in the profit-making.
04:22 This gave the impression that the investment is directed to the growth companies.
04:26 It is important to note in the last quarter that the comparison is not only with the results of the quarter and the quarter of the previous quarter,
04:34 but also with the results of the expectations.
04:36 Some companies achieved positive results.
04:38 There was no positive response to the stock market, but it was negative,
04:42 even if there were increases in performance, but less than the expectations.
04:46 The expectations became a radar for the investor, based on his strategy in the stock market,
04:53 which was not present before.
04:55 This is what attracted us the most in the current quarter.
04:57 Will this strategy continue, in your opinion, since the investor started testing it in the stock market, Mr. Ibrahim?
05:03 Or is it only related to this period of time?
05:07 This is an important question.
05:10 I think the investor has developed a lot.
05:13 It is very difficult to read the stock market today.
05:16 It is very difficult.
05:17 When you read the stock market today, it means that you will look at the financial,
05:21 the industry, the management, the financial situation, how the company performed,
05:27 the continuous profits, the continuous contracts,
05:30 the future needs to be studied.
05:34 This may make the investor go to the expected middle,
05:38 meaning that the experts or the expert houses, when you study the stock market,
05:44 you give a impression of the stock market situation, and who plays this role,
05:48 which makes the investor read only for these results.
05:53 If he goes deeper, he will find more reasons for these expectations,
05:57 and the investor's situation will develop.
06:00 I expect that the investor will continue to develop in his convictions in the stocks,
06:05 when he invests, where he invests, and the sectors he likes.
06:09 This leads us to the question, is this development being reflected on the insurance sector?
06:14 Because we see today that even the insurance sector is achieving its second highest profit in its history.
06:20 And maybe the repeated losses, which are still below 30,
06:23 we are talking about 27 repeated losses for the insurance sector,
06:26 seem somewhat tempting because of the rise we have seen, Mr. Ibrahim.
06:30 How much do you agree with me that the sector has also changed today,
06:34 meaning the investor's view of it during this period?
06:38 I agree with you 100%.
06:40 100%. The sector's change has become clear.
06:44 When we talk about growth companies, and the investor's investment or search for growth companies,
06:50 the main growth companies that are expected to have good future returns are the insurance sector.
06:58 This is confirmed by the Rajhi Bank in September 2022,
07:02 which invested in the company, which increased its share to about 35%.
07:08 In 2024, the Inma Bank also acquired 3.5 million shares in the Arabian Daraa.
07:16 We know that banks have more maturity,
07:20 meaning that they are excellent in measuring the market and predicting when and where to invest.
07:29 The bank's approach, which is professional, as they say,
07:33 in entering the insurance sector, gives a positive impression
07:37 because it has a prospect that this sector will survive.
07:42 The Finance Minister's statement in 2022 also mentioned that there will be a new body,
07:49 and also mentioned that there will be integrations and improvements
07:54 to increase the financial capital of companies to meet the needs.
07:59 This gives a positive impression.
08:01 Finally, if we look at healthcare, last year there was a higher performance,
08:06 and it is continuing.
08:07 We know the link between the insurance sector and the health sector.
08:13 The rise of the health sector helps the insurance sector to grow in results.
08:19 All these indicators give a positive impression to this sector,
08:23 especially with the new administrations that operate the main positions in insurance companies.
08:30 We expect a good future for this sector.
08:33 Thank you, Mr. Ibrahim, for the interview with the CEO of Qima Financial.
08:37 You were with us from Riyadh. Thank you very much.