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00:00 Let's talk about the details of the Saudi session today. Mr. Adel Al-Huayl, a member of the Saudi Analysts Association joins us.
00:08 Mr. Adel, welcome to our show.
00:10 First, what is your opinion of these virtual exchanges that we are seeing on the Saudi market indicator during this period?
00:16 What is the catalyst that could bring us out and bring investors out of these virtual exchanges? What is the investor waiting for?
00:24 First, if we look at the movement of the virtual exchanges, we will notice that in the past period,
00:30 the number of virtual exchanges has been around one to one and a half months, similar to the one in the Arab region.
00:35 Of course, all of these are technically prepared for the results, and we are looking for long-term investment opportunities.
00:47 This means that many companies' improvements could have a positive impact on the direction of investment in the coming period.
00:56 If we notice in the past exchanges, exchanges that were virtual or artificial virtual,
01:05 could last until the end of the current month, and we are looking forward to the oil movement and the improvement of the petrochemical sector.
01:17 Artificially, the main supply chains of the oil sector have reached areas that could move this sector in the coming period.
01:25 The energy sector is also technically prepared for a positive move.
01:30 Let's stop at this point, Mr. Adel. Many periods have passed in which oil prices have not been reflected in the Saudi market.
01:40 We are seeing the reflection only when we have sharp declines in oil markets, historically.
01:46 Today, with the approach of the OPEC+ meeting in June 1, if we start to see a surge in oil prices,
01:52 do you expect that it will reflect the Saudi market?
01:56 Currently, the energy sector is technically prepared to move beyond this area and lead the market to more positive areas.
02:06 We noticed in the past period that the energy sector did not move in a positive direction, it was under the control of the banking sector.
02:19 Currently, the banking sector may witness some corrections and may be prepared for the next period.
02:28 You mentioned the Egyptian sector. Today, a report from BMI, a research company affiliated with Fitch Solutions,
02:36 says that this is an accelerated situation in loans in the Kingdom of Saudi Arabia, and this will reflect positively on banks.
02:43 This recession will be based on a strong demand for trust, as well as the recovery of interest rates, even if it is moderate.
02:53 To what extent do you think this will prepare banks for profits in at least the fourth quarter of the year,
02:59 if we start to see this credit growth that you are talking about, Fitch?
03:04 Of course, the banking sector in the past period and we may also witness positive movements in the next period.
03:12 Of course, as you can see, there may be a surge in loans, this is also a support for the banking sector in the coming period.
03:24 The banking sector has prepared results, and there is a lot of improvement and a lot of banks are keeping up with its results.
03:34 And also, there is a positive growth in the past period.
03:39 God willing, it will be a support for the indicator movement in the coming period, God willing, and we may witness the acceleration at the end of the fourth quarter.
03:48 Mr. Adel, it is striking that the interest rates of Saudi banks increased by 10.7% in March,
03:55 despite the increase in the borrowing cost, because the interest rate did not decrease,
04:01 because the federal interest rate did not decrease, and therefore the interest rate is still high.
04:05 Thank you very much for this clarification.
04:10 But let's also move to the rotation file between sectors.
04:14 When you look at the performance in the second half of this year, do you expect that we will start to see a kind of rotation between sectors?
04:21 And who will benefit in your opinion?
04:24 Of course, the results of the companies and the results of the sectors have witnessed a very large difference in results.
04:32 Of course, the Egyptian sector has witnessed an improvement and continues to improve its results.
04:39 The petrochemical sector has also witnessed positive results and profits after some of the companies have witnessed some losses.
04:48 The health care sector has also witnessed a good growth and may maintain its profits in the coming period.
04:54 The energy sector, as I mentioned to you, may witness in the coming period, with the increase in oil prices and its positive movement,
05:02 we may witness a positive movement for the energy sector and also positive results, God willing, for Arabco, God willing.
05:11 Thank you very much, Mr. Adel Al-Huayl, member of the Saudi Analysts Association.