‎Tadawul margin financing substantially improving YTD: Derayah Financial CEO

‎Tadawul margin financing substantially improving YTD: Derayah Financial CEO

Margin financing in the Saudi Exchange (Tadawul) has been substantially improving year-to-date (YTD) backed by investors’ enormous appetite for new investment positions at long-term lucrative prices, stated Mohammed AlShammasi, CEO of Derayah Financial on the sidelines of Saudi Capital Market Forum 2023.

Derayah Financial has a significant market share with a big margin financing portfolio. The company has witnessed huge demand for the margin financing YTD, which led to injecting additional funds.

The Saudi market significantly retreated from the 14,000-pts level to the 10,000-pts level, though, this allows investors to enter new business sectors and take new investment positions in the long term, especially as these industries witnessed steep declines like banks and petrochemicals.

AlShammasi indicated that the Saudi market got off to a good start this year, expecting liquidity balance to recover as it hasn’t reached last year’s levels yet.

He also forecast the monetary tightening policy to end soon post the Fed’s decision to raise benchmark rate by 0.25%, which broke a trend of consecutive meetings with rate increases.

AlShammasi indicated that the Saudi market got off to a good start this year, expecting liquidity balance to recover as it hasn’t reached last year’s levels yet.

He also forecast the monetary tightening policy to