High Volatility in the General Index Ends the Week on a Balanced Note The General Index opened last week on an upward trend, reaching 11,051 points, led by the banking sector. This was followed by a sudden drop to approximately 10,800 points within an hour, after which the market attempted to recoup its losses amid heavy trading volume, reaching 16 billion riyals in a single session, and hit a new high of 11,070 points, supported by SABIC and Saudi Telecom; it ended the week at 11,042 points, maintaining a balanced trend within the uptrend. *** The banking sector’s return to fair value suggests the uptrend may end soon. Next week, the general index is expected to confirm signals of a trend reversal; as, after entering a period of uncertainty on the daily chart, this trend is likely to extend to the weekly chart, signaling the imminent end of the uptrend from the 9,400-point level, which is expected to peak just above the psychological barrier of 11,000 points. It is very important to note that the banking sector has reached its fair value relative to the general index based on the price-to-earnings ratio. *** Last Week’s Sessions: – The market’s trading range was 336 points, which was wider than last week’s range. – Total market liquidity reached 61.2 billion riyals, up 29.3 % from last week. – The total value of private transactions reached 94.6 million riyals after having been completely absent for weeks. – The banking sector hit a new annual high of 24,747 points, the highest level since May 2008. – Al-Inmaa shares accounted for 13.2 % of market liquidity, accompanied by wide volatility. *** Next Week’s Sessions: – A bearish pattern is expected, with a low of 10,644 points and a high of 11,070 points for the market, led by banks and SABIC. – Telecom shares have entered a seller’s zone, and selling pressure is likely to target the 70 riyal level. – Al Rajhi shares reached their uptrend target at 76 riyals and are likely to reverse direction. – Petrochemical sector: The 9,000-point barrier will be a difficult psychological hurdle for buyers. – The market is looking for new buying catalysts or sudden selling catalysts—the latter being more likely