The Saudi Stock Exchange's main index, TASI, closed Wednesday's trading session with a notable rise, continuing its positive trajectory and bolstering investor confidence in the market's performance. The index closed at 10,948 points, achieving gains of 0.3%, amid healthy liquidity of SAR 4.7 billion, reflecting strong buying momentum in key sectors.
Key market performance details
The session saw trading of approximately 230.5 million shares across various sectors. Data released by the Saudi Stock Exchange (Tadawul) showed that the total market capitalization of listed shares reached approximately SAR 9.2 trillion. Notably, the number of gainers was higher, with 185 companies seeing their shares rise, compared to only 71 companies experiencing declines, out of a total of 268 companies listed on the main market. Shares in the insurance and financial services sectors led the gainers, with companies like Malath Insurance, Walaa, and Al-Taawuniyah leading the way, reflecting positive activity in these sectors. Conversely, shares of companies such as Nafouth and Sadarat were among the biggest losers.
Economic context and the importance of the Saudi market
This positive performance comes within a broader context reflecting the strength and resilience of the Saudi economy, the largest in the Middle East and North Africa region. The Saudi Stock Exchange (Tadawul) is a pivotal component of the Saudi Vision 2030 programs, which aim to diversify income sources and reduce dependence on oil. Ongoing economic reforms, such as the market's inclusion in major global indices like MSCI and FTSE Emerging Markets, have contributed to attracting significant foreign investment inflows, increasing market depth and liquidity and making it a prime destination for international investors seeking opportunities in the region.
Factors affecting index performance
The performance of the Tadawul All Share Index (TASI) is influenced by a range of local and international factors. Locally, quarterly corporate earnings and government spending on major projects play a key role in shaping investor sentiment. Internationally, oil prices remain a direct factor affecting the performance of major companies, particularly in the energy and petrochemical sectors. Furthermore, global interest rate trends and decisions by major central banks influence investment decisions in emerging markets, including the Saudi market.
Parallel market performance 'growth'
As for the parallel market, Nomu, which serves as a vital platform for promising small and medium-sized enterprises (SMEs), it witnessed relative stability. The Nomu index closed slightly higher, up 0.04%, at 23,368 points, with a trading value of SAR 13.6 million. Despite the mixed performance of listed companies, with 33 rising and 36 declining, the existence of this market strengthens the entrepreneurial environment and provides diverse financing options for growing companies aspiring to expand.
