The Saudi Stock Exchange's main index (TASI) closed lower on Wednesday, declining 0.5% and losing approximately 54 points to settle at 10,847 points. This drop occurred amidst trading volume of around SAR 3.7 billion, resulting from the trading of approximately 167 million shares. The total market capitalization remained stable at around SAR 9.4 trillion.
Key market performance analysis
Today's trading session saw mixed performance among listed companies, with the majority of stocks closing in the red. Shares of 187 companies declined, while only 73 companies saw their share prices rise, out of a total of 268 companies listed on the main market. Among the top gainers were companies such as Marafiq, Paper Manufacturing, Jamjoom Pharma, Eastern Development, and Azm. Conversely, the biggest losers included Chubb, Kayan Saudi, Solutions, Al-Mousa, and Gas.
The parallel market “Nomu” is following a downward trend
On the parallel market (Nomu), the index also closed lower, declining by 0.8% to settle at 22,916 points. Trading value on Nomu reached approximately SAR 16.9 million, with a trading volume of 1.8 million shares. Shares of 37 companies declined, while 30 companies saw their share prices rise, 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 and most liquid in the Middle East and North Africa region, and it forms a key axis in the economic diversification plans within the Kingdom’s Vision 2030. The market has witnessed important structural developments during the past years, most notably its inclusion in global emerging market indices such as MSCI and FTSE Russell, which has enhanced its attractiveness to foreign investors and increased its depth and regional influence.
Local and global influences on index performance
The performance of the Tadawul All Share Index (TASI) is influenced by a complex interplay of factors. Domestically, markets are awaiting quarterly corporate earnings reports and indicators of local economic growth. Globally, the Saudi market's performance is closely tied to oil prices, the primary driver of the national economy, as well as global monetary policy trends, particularly the US Federal Reserve's interest rate decisions, given the Saudi riyal's peg to the US dollar. Today's decline reflects investor caution amid the prevailing uncertainty in the global economy, prompting them to reassess their investment positions.
