Oil drops shares of Saudi energy companies … and 3 experts sign investment card

The sharp fall in oil prices, today, Wednesday, June 22, put pressure on the shares of Saudi energy companies, most of which turned red at the end of trading.

The energy sector in Saudi Arabia has been negatively affected by the drop in oil prices by more than 6.5% as Brent crude oil by 01:00 p.m. GMT (16:00 pm Mecca time) recorded about $ 108.14.

The drop in oil prices came amid US moves to push energy companies into the country to reduce fuel costs, amid fears of a possible economic recession following rising interest rates.

U.S. President Joe Biden plans on Wednesday to ask Congress to consider a 3-month suspension of the federal tax of 18.4 cents per gallon on gasoline, and to call on states to increase their own fuel taxes on too short.

Aramco share price

Aramco’s share price traded 0.80% to 37.20 riyals ($ 9.91) today, Wednesday, according to data reviewed by the specialized energy platform.

During today’s trading in the Saudi stock market, “Tadawul”, Aramco’s share recorded transactions worth 161.7 million riyals ($ 43.10 million), as more than 4.3 million shares were traded, with a total of number of transactions of 9.8 thousand transactions.

Egypt’s financial market analyst Hanan Ramses expected Aramco’s share to make gains, following the spate of declines in oil prices, amid expectations of an increase in crude oil demand.

In statements to the Specialized Energy Platform, she said, “Aramco’s share price is likely to rise in a range between 38.80 and 41.98 riyals ($ 10.34 and $ 11.18), and in the event of a decline, the lowest level that can be reached 36. riyals ($ 9.59).

She stressed that Aramco’s share is likely to break the 40 riyal ($ 10.66) Jaggs in the coming days, which it recently achieved with the free dividends per share.

ACWA Power Saudi Headquarters

The share price of ACWA Power

ACWA Power Saudi Arabia’s share price fell 2.14% to 146 riyals ($ 38.91), following a surge in previous sessions.

ACWA Power’s shares recorded transactions in the Saudi stock market “Tadawul” exceeding 218.7 million riyals ($ 58.29 million), trading more than 1.46 million shares, with a total of 8.6 transactions thousand transactions.

And financial market analyst in Egypt, Hanan Ramses, advised buying ACWA Power, and calculating the 125 riyal level ($ 33.31) as the level of profit protection, as the stock is expected to return to the upward trend, by take advantage of the positive news related to the energy production sector, and the major transactions recently signed by the company.

She said the ACWA Power stock saw some short-term profitability operations, which reached it near the level between 120 and 125 riyal (31.98: $ 33.32), which is a major support level, and the share could rise the weather, until it reached near the level of about 150.

She pointed out that the ACWA Power stock price is heading for the first resistance level at SAR 160 ($ 42.64), and if it crosses it upwards, it will at least return to the SAR 190 level ($ 50.64) target.

Shares of Saudi energy companiesSaudi Electricity Share

In the same vein, Saudi Electricity shares followed, falling 1.37% to 23 riyals ($ 36.13).

The Saudi Electricity share recorded transactions in the Saudi stock market approaching 44 million riyals ($ 11.73 million), trading with more than 1.9 million shares, with a total number of transactions amounting to 2.3 thousand transactions .

Hanan Ramses said the decline in the share price of Saudi Electricity came as a result of the decline in the shares of Saudi energy companies.

She explained in exclusive statements to Energy that the decline in market indicators came with the White House’s efforts to suspend the handling of the federal tax on gasoline.

She added that the current stage is a consolidation phase that supports the stock’s performance in the medium and long term, as the price of 20 riyal is a total price by which the stock is preparing to rise to the level of 25 riyal in the medium term.

Petro Rabigh

On the other hand, Petro Rabigh shares escaped the crash that hit the shares of Saudi energy companies as it closed at 4.41% and recorded 18 riyals ($ 4.80).

Petro Rabigh’s shares recorded transactions in the Saudi stock market that exceeded 138.7 million riyal ($ 36.97 million), with more than 7.5 million shares traded, with a total number of transactions covering 9.4 thousand transactions amounted to.

Saudi shares

Today, Wednesday, the Saudi equities index closed at 339.76 points to close at 11,319.88 points, with trades worth 8.2 billion riyals ($ 2.19 billion).

The volume of shares traded amounted to 219 million shares, divided by more than 443,000 transactions, in which the shares of 21 companies recorded an increase in their value, including the fourth Petro, while the shares of 188 companies closed, led by ACWA Power, Aramco and Saudi Electricity.

Shares of Saudi energy companies
Head of the Technical Analysis Department at Okaz Financial Brokerage and Investment Company, Ahmed Abu Al-Yazid

Analyze shares of Saudi energy companies

The head of the technical analysis division at Okaz Financial Brokerage and Investment Company, Ahmed Abu Al-Yazid, believes that the significant drop in the shares of Saudi energy companies came with a drop in oil prices by more than 6% during trading today, Wednesday .

He said in statements to the Specialized Energy Platform that the Aramco share price in the Saudi market is still moving above the rising trend line that started since December 2021, and is likely to rise in the coming sessions to the next resistance level of 38.80 rial ( $ 10.34), followed by 41 riyal ($ 10.9).

He added: “As for ACWA Power, one of the shares of Saudi energy companies, it has seen a decrease around the current resistance level of 160 riyal ($ 42.65), and it is likely to reach the next support level of 129 riyal ($ 42.65). ) retest. 34.38), before resuming the rise to target the next resistance level 180.0 riyals ($ 180).

He indicated that the Saudi electricity stock has returned from the main support level of 22 riyal ($ 5.86), and is likely to target the next resistance level at 25 riyal ($ 6.66).

Abu Al-Yazid explained that Petro Rabigh, the only stock that has seen an increase among the shares of Saudi energy companies, has returned from the key support level of 16 riyals ($ 4.26), and this is likely to be the next resistance level 20 riyals target. ($ 5.33), followed by 22 riyals ($ 5.86) in the short term.

Shares of Saudi energy companies
Financial Market Analyst in Egypt, Hanan Ramses

Shares of Saudi energy companies

In turn, Hanan Ramses, financial market analyst in Egypt, believes that the shares of Saudi energy companies are likely to rise again, as oil prices will rise in the medium and long term, due to the decline in supply due to the sanctions imposed on Russia due to the Ukrainian war, and the embargo imposed on Russian oil and easing Chinese measures to confront the Corona virus.

She explained in her statements to the energy platform that the performance of the energy sector in the Saudi market is directly affected by oil prices, after opening at highs at the beginning of the session, it returned to decline and turned red, and decreased by 0.11%, which is estimated at 8 points to reach the level of 6269 points.

Supports the Saudi market

In turn, Mahmoud Shoukry, CEO of AMS Investment Group, an expert in financial markets, believes that the Saudi market passed the test successfully, learned the lesson well from the 2008 global financial crisis and was able to withstand the Corona crisis, which is much stronger than the global financial crisis.

In exclusive statements to Energy, he said: “The success of the Saudi market has come to meet the challenges facing global markets, with the Saudi government largely supporting the capital market and pumping more liquidity directly and indirectly.”

He pointed out that state support came through amending the rules of legislation and removing all obstacles to investment and expanding companies by providing the easiest and cheapest financing methods than borrowing from banks, which managed to make big attracting foreign capital; To become the largest company in the world when the share price reaches 40 riyal.

He explained that the IPO program, which included a number of companies, including ACWA Power, had great success from the beginning of 2021 to the first half of 2022 and reached more than 3 times the market value of the companies.

Saudi offer program

In statements to the Specialized Energy Platform, Shoukry said that the realization of the proposals to great heights ranging from 53% to 230 percent in some of them confirms the success of the program and the achievement of the purpose of the offer by great liquidity for these companies to provide. , to expand their future projects.

He added: “We find that Aramco, for example, has maintained dividends, and despite the selling pressure in Corona, and the appearance of an offer surplus, it has committed itself to dividends to shareholders through 2021 and until 2022, which the company ‘s stability and commitment to its responsibilities to Arab investors and shareholders and foreigners. “

He stressed that it reflected positively on Aramco’s share. It retested the levels of 42 riyals, surpassing it with large trading volumes, before being exposed to a huge wave of profit-taking, which brought it to stability around the levels of 37 riyals, to the clarity of vision in the oil and gas. crisis that destroyed all the priorities of energy companies due to the Russian-Ukrainian crisis.

Shares of Saudi energy companies
Financial Markets Expert, Mahmoud Shoukry

ACWA Power Investments

Shoukry pointed out that ACWA Power’s share has achieved great success since its listing in the Saudi market, at a price of 52 riyal ($ 13.86), and it has reached more than 175 riyal ($ 46.64), ‘ an increase of more than 250%, and with it began an ambitious plan to expand projects internally and externally.

He explained that the company’s signing of an agreement to implement a major project in Egypt, on the sidelines of the visit of Saudi Crown Prince Prince Mohammed bin Salman, reflected positively on the share, as it did during yesterday ‘s trading increased by about 10%. , from 139 rial ($ 37.05) to 138 rial (36.78). dollars).

He stressed that ACWA Power’s expansion into power projects in Pakistan, Uzbekistan and Southeast Asian countries will be reflected in the share’s performance and the company’s business results in the third and fourth quarters of this year.

He stated that the petrochemical sector is one of the leading sectors in the Saudi market; Because it includes the size of giant companies like Aramco, SABIC, Sipchem, Chemanol and Petro Rabigh.

He pointed out that these companies achieved positive business results in the first quarter of this year, compared to the first quarter of 2021, which supported the performance of their shares, despite the escalation of the Russian-Ukrainian crisis.

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