The Saudi Stock Exchange's main index (TASI) ended trading on Thursday, the last session of the week, with a notable decline of 1.2%, closing at 10,818 points. The session witnessed widespread selling pressure that led to this drop, amidst trading with a total value of approximately 4.5 billion Saudi riyals, reflecting a cautious and watchful atmosphere among traders at the end of the week.
Trading details and market capitalization
According to data released by the Saudi Stock Exchange (Tadawul), the volume of shares traded during the session reached approximately 218.3 million shares, distributed across various listed sectors. The market capitalization of Saudi stocks stood at around 9.2 trillion riyals, maintaining the Saudi market's position as the largest financial market in the Middle East and North Africa region in terms of market capitalization, despite daily price fluctuations.
Company and sector performance
The session witnessed a sharp divergence in company performance, with a significant downward trend. Shares of 233 companies declined by the end of trading, representing the vast majority of listed companies, while only 26 out of 266 companies listed on the main market saw their shares rise. The top gainers included Investment REIT Fund, Qaw Telecom, Saudi Ground Services Company (SGS), Al Waha Company, and the National Shipping Company of Saudi Arabia (Bahri). Conversely, Thimar, Baazeem, Sinomie Retail, United Insurance, and Dar Al Arkan were among the biggest losers during the session.
Parallel market (growth)
On the parallel market, Nomu, the index followed the main market's lead, closing down 0.6% at 23,413 points. Trading volume on Nomu reached approximately SAR 18 million, with 2.6 million shares traded. The market capitalization of the parallel market stood at around SAR 42.4 billion, with 40 companies experiencing declines and 26 companies seeing gains out of the 127 listed companies.
Market context and economic importance
This decline is within the normal fluctuations of financial markets, which are influenced by supply and demand factors and global and local economic influences. The Saudi financial market is a true reflection of the national economy, playing a pivotal role in the Financial Sector Development Program, one of the programs under the Kingdom's Vision 2030, which aims to develop an advanced financial market that attracts both domestic and foreign investments. Analysts are closely monitoring the support and resistance levels of the Tadawul All Share Index (TASI), as holding above 10,800 points is technically crucial for maintaining positive momentum in the coming period, especially given the financial results of companies and the overall economic conditions.
