The Saudi Stock Exchange (TASI) general index declined
The Saudi Stock Exchange's main index (TASI) closed Tuesday's trading session with a notable decline, falling 0.8% and losing approximately 89 points to settle at 11,098 points. This drop occurred amidst trading valued at around SAR 4.5 billion, with a volume of 226 million shares traded. The total market capitalization of listed shares reached approximately SAR 9.4 trillion.
General context and importance of the Saudi market
The Saudi Stock Exchange (Tadawul) is the largest in the Middle East and North Africa region and plays a pivotal role in the national economy as a key component of the Financial Sector Development Program under Saudi Vision 2030. Vision 2030 aims to diversify the Kingdom's revenue streams away from oil and enhance its position as a global investment hub. In recent years, the market has undergone significant structural reforms, including opening up to qualified foreign investors and being included in global emerging market indices such as MSCI and FTSE Russell, which have increased its attractiveness to international capital and enhanced its depth and liquidity.
Analysis of sector and company performance
Today's session saw a dominance of declining stocks, with 218 companies seeing their shares fall, while only 42 companies saw their shares rise, out of a total of 268 companies listed on the main market. This performance reflects a cautious sentiment among investors, potentially linked to several factors, including fluctuations in global oil prices, global macroeconomic indicators, and anticipation of quarterly corporate earnings. Among the top gainers were shares of Shams, Sahl, Al-Mashair REIT, Dar Al-Arkan, and BSF. Conversely, shares of Amac, MIS, National Education, Saudi Ceramics, and Arabiya led the list of decliners.
Parallel market performance (growth)
The parallel market (Nomu), dedicated to small and medium-sized enterprises (SMEs), was not immune to this decline, with its index closing down 0.9% at 23,548 points. Trading value on Nomu reached approximately SAR 18.5 million, with a volume of 2.3 million shares traded. The parallel market saw 58 companies' shares decline, while only 27 companies saw their shares rise, out of a total of 125 listed companies.
Expected impact and its importance for investors
The performance of the Saudi stock market is a vital indicator of the health of the local economy and investor confidence. Daily declines, such as those seen on Tuesday, may affect investor sentiment in the short term, but long-term performance remains tied to the Kingdom's economic fundamentals and the success of its economic diversification plans. Local and international investors closely monitor these movements when making investment decisions, as they reflect the performance of the region's largest companies in vital sectors such as banking, petrochemicals, and telecommunications.
