The Saudi Stock Exchange's main index, TASI, ended Thursday's trading session, the last of the week, with a notable decline of 0.7%, closing at 11,382 points. This drop occurred amidst active trading with a total value of SAR 6.9 billion, reflecting investor interest and engagement with market developments. The total market capitalization reached approximately SAR 9.5 trillion.
According to official data from the Saudi Stock Exchange (Tadawul), approximately 299.9 million shares were traded during the session. The figures revealed a predominantly red market, with 232 companies experiencing declines, while only 31 companies managed to post gains out of the 268 listed on the main market. Among the top gainers were shares of Amac, SMC, and Aljazira. Conversely, shares of Red Sea, Al-Fakhariya, and CGS led the list of decliners.
General context of the Saudi financial market
The Saudi Stock Exchange (Tadawul) is the largest and most liquid stock market in the Middle East and North Africa region and a cornerstone of the Kingdom's economic transformation program, Vision 2030. This vision aims to diversify the economy away from oil dependence, and the stock market plays a pivotal role in attracting foreign investment and financing major projects. The index is dominated by key sectors such as banking, basic materials (petrochemicals), and energy, which often dictate its overall direction. In recent years, the market has witnessed major listings, most notably the initial public offering (IPO) of Saudi Aramco, further enhancing its depth and international standing.
The importance of market performance and its effects
The impact of the Tadawul All Share Index (TASI) extends beyond local investors, affecting multiple levels. Locally, market declines impact the confidence of both individual and institutional investors, potentially leading to a reassessment of their investment strategies. Regionally, the Saudi market is often viewed as a leading indicator for other GCC markets, and significant movements within it can have repercussions for neighboring markets. Internationally, following its inclusion in major global indices such as MSCI Emerging Markets and FTSE Russell, the Saudi market's performance has become a focus for global portfolio managers, as its volatility influences foreign capital flows into the Kingdom and the wider region.
Parallel market performance 'growth'
In contrast to the performance of the main market, the Nomu Parallel Market Index managed to close positively, rising 0.2% to 23,910 points. Although Nomu's liquidity is significantly lower than the main market, at SAR 22.8 million, its performance reflects different dynamics. This market focuses on small and medium-sized enterprises (SMEs) with promising potential, and saw 2.5 million shares traded. Its data showed that 46 companies' shares declined, while 33 companies' shares rose, indicating a divergence in performance among its constituents.
