Saudi market performance in Wednesday's trading
The Saudi Stock Exchange's main index, TASI, closed lower on Wednesday, declining by 0.4%, or approximately 45 points. The index closed at 11,167 points, with a turnover of SAR 4.88 billion resulting from the trading of nearly 356.3 million shares. Shares of 192 companies declined, while only 66 companies saw their shares rise, out of a total of 268 companies listed on the main market, reflecting a predominantly selling trend throughout the day. The total market capitalization reached approximately SAR 9.5 trillion.
Among the most influential stocks, shares of Al-Mowasat, Dallah Healthcare, Research and Media, Chubb, and Dar Al Arkan were among the biggest losers. Conversely, shares of Shams, Zain Saudi Arabia, Al Masar Al Shamel, MBC Group, and Abu Moati emerged as the top gainers of the session.
The parallel market 'Nomu' is following a downward trend
The parallel market index, Nomu, also closed lower, declining by 0.7% to settle at 23,486 points. Trading value on the parallel market reached approximately SAR 8.7 million, with a trading volume of 1.6 million shares. Nomu saw mixed performance among listed companies, with 32 companies seeing their share prices rise while 31 companies experienced declines, out of a total of 125 listed companies.
General context and importance of the Saudi stock market
The Saudi Stock Exchange (Tadawul) is the largest financial market in the Middle East and North Africa region and plays a pivotal role in the national economy. Its performance reflects the confidence of local and international investors in the Kingdom's business environment, particularly in light of the major economic transformations driven by Saudi Vision 2030. This vision aims to diversify income sources away from oil, strengthen the role of the private sector, and attract foreign investment, making Tadawul a key platform for financing major projects and achieving these strategic objectives.
Local and global influences on the performance of 'TASI'
The performance of the Tadawul All Share Index (TASI) is influenced by a complex interplay of factors. Domestically, quarterly corporate earnings, dividend distributions, and major government projects play a significant role in shaping the market's direction. Globally, fluctuations in oil prices directly impact investor sentiment due to the energy sector's crucial role in the Saudi economy. Furthermore, global monetary policy decisions, particularly those of the US Federal Reserve regarding interest rates, are quickly reflected in the Saudi market because of the riyal's peg to the US dollar. The inclusion of the Saudi market in global emerging market indices such as MSCI and FTSE Russell has further enhanced its integration with global markets and made it more susceptible to foreign investment flows and international economic events.
