Traders in the Saudi stock exchange are set to liquidate 30 percent of their equities ahead of the Eid break over concerns of geopolitical events in the region, reported Asharq Al-Awsat.
Despite large confidence in Saudi Arabia’s economy, and its stability in facing current events, added the newspaper, traders to remember the sharp drop witnessed by the Saudi market prior to Eid in 2008, in light of the financial crisis, severely impacting the price index when trading resumed, added the newspaper.
The Saudi stock exchange lacks the confidence of its traders, according Dr. Salem Baajaja, professor of accountancy at Taif University.
“The confidence comes back gradually, but quickly disappears if the market index dropped sharply, and without any logical reasons,” he told Asharq Al-Awsat.
The Saudi Stock Exchange (Tadawul) closed at 7,003.79 on Wednesday, marking a vital resistance level, reported AME info website.