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It’s been dull

Posted: 09/30/2013 - 1:10 pm

In the past ten days or so, our commentaries on the Saudi market have been scarce and our focus has been on a couple of themes that looked interesting. This is due to the simple fact that the market has been dull and fairly inactive lately.

As shown by the chart, the past eight sessions have conveyed disinterest in the market. The reason we call it disinterest as opposed to weakness is because it remains unclear whether or not the recent gradual and dull decline is setting the stage for renewed gains.

We had mentioned in earlier notes that we were very cautious and worried heading into the September-October period and we were fairly conservative with our trading approach since we only highlighted a few stocks that pertained to a specific theme (the industrials and the lagging petrochemical stocks).

With the earnings season kicking off soon, it will be interesting to see if it can act as a positive catalyst for the equity market but at this stage, we stick to watching more and trading less until we come across some screaming buying opportunities.

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