Investors in Saudi Arabia’s stock market, the largest in the Middle East, should halt their speculative activities to support the bourse and ensure normal growth based on good corporate performance, the country’s largest bank said.
National Commercial Bank (NCB) said Tadawul All Share Index (TASI), Saudi Arabia’s main equity index has stagnated and is facing a strong resistance level.
Citing market figures, it said that during post-regional political outbursts, the index has peaked at end of April at 6,724 and has been hovering around 6,700.
This is a rediculous statement by the bank. When is there not speculative trading in a freely traded market?
ReplyDeleteIf the market moves "too much" "they" want less speculation. Now, if it moves too little, "they" blame it on speculation, as if speculators are not taking into account fundamentals, and if they did, something different would happen in the market.
Another example of the immature understanding of how markets work. No wonder individuals - less experienced investors/traders - continue with these types of misconceptions.
This bank should be ashamed of itself.