Home » Business » The Saudi market suffers 4% losses … and liquidity may change its direction to real estate

The Saudi market suffers 4% losses … and liquidity may change its direction to real estate

The Saudi stock market suffered strong losses at the end of Sunday’s trading, exceeding the 4% barrier.

These declines are the largest in one session since last May.

The main index ended the trading, down 4.12%, to the level of 8154 points, after losing 351 points.

The value of transactions reached 9.2 billion riyals, with volumes of 364 million shares.

The decline dominated the performance of most of the shares, as the prices of 195 shares fell, and only 3 stocks rose.

Shares of a number of companies suffered maximum losses, including Refineries, MEPCO, FIPCO, Metallic and Al-Jouf Cement, all of which fell by 10%.

The most traded shares by value were Bin Dawood 738 million riyals, printing and packaging 276 million riyals, and Dar Al-Arkan 257 million riyals.

The director of the Zad Consulting Center, Hussein Al-Raqeeb, said, in an interview with Al-Arabiya, that the abolition of the value-added tax on real estate transactions contributed to the displacement of liquidity from the Saudi stock market to the real estate sector, and this justifies the sharp decline in liquidity and affected the Saudi market index in the past sessions. .

He expected that the next stage will be the stage of the return of liquidity to its real activities, and he expected the market to witness daily liquidity in transactions between 4 and 5 billion riyals at the beginning of the year.

Saudi Arabia has introduced new tax amendments to the real estate sector by replacing the value-added tax, which is about 15%, with a real estate tax of about 5%, as the real estate sector in the Kingdom is expected to continue its steady growth during the coming period, with government efforts to increase the percentage of citizens’ ownership.

According to the new amendments, the Saudi government will bear the tax on citizens ‘purchases of new homes, with a value not exceeding one million riyals, while the value that the government bears before the new amendments is about 850,000 riyals, a step that will enhance the citizens’ appetite for home ownership.

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