The Agricultural and Petrochemical Improvement in Saudi Stock Market - Research Paper Example

The paper "The Agricultural and Petrochemical Improvement in Saudi Stock Market" is a great example of a research paper on finance and accounting. It is axiomatic to squabble that the growth of an economy is measured by the performance of its stock exchange. An economy with a robust stock exchange is likely to attract Foreign Direct Investment and stability in the country. The continued growth of the Saudi Arabia stock market accompanied by the listing of new investment entities is an indication of the growth of the economy.

The country’s expansionary monetary and fiscal policy to increase government spending resulted to a boost in the economic growth of Saudi Arabia. Despite the fact that the economy expects an increase in volatility and boosting in the profits after the performance, it is highly likely that the positive factors are more than the concerns. Some of the reasons behind the positive projections include; improved the landscape of the global economy with the continued preference of the investor; a robust recovery of the global economy; perception of low regional risk resulting in multiple expansions, reduced risks which is limited for some of the main sectors and finally the perception of the region to some of the global events.

(Saudi Arabia Agribusiness Report - Q3 13) The stock market is divided into sixteen market groups with a total of one hundred and sixty-seven listed companies. The group of companies found in the Saudi stock market is; Banks and Financial Services, Petrochemical Industries, Cement companies, Retail companies, Energy and Utility companies, Agriculture and Food Industries, Telecommunication and Information Technology, Insurance companies, Multi-investment companies, industrial investment companies, Building and Construction companies, Real Estate Development companies, Transport companies, Media and Publishing companies and the Hotel and Tourism companies.

This research paper will focus on the Petrochemical industries segment and the Agricultural and Food industries segment. In the Petrochemical industries segment, the paper picked three companies namely, the Saudi Basic Industries Corporation (SABIC), the Saudi Kayan Petrochemicals Company (KAYAN), and the Methanol Chemicals Company (CHEMANOL) which are all listed in the Saudi stock market.