The Saudi Stock Exchange's main index (TASI) opened trading on Thursday with a notable decline of 0.7%, falling to 10,381 points. The opening session saw clear selling pressure reflected in trading volumes, with the value of trades in the first few minutes reaching approximately 208 million Saudi riyals.
Details of trading activity and company performance
According to data released by the Saudi Stock Exchange (Tadawul), early trading saw a volume of 12.5 million shares. The total market capitalization of listed shares remained relatively stable at a substantial SAR 8.75 trillion, reflecting the market's depth despite daily fluctuations.
Red dominated trading screens as shares of 229 companies declined at the start of the session, while only 21 companies managed to register gains, out of a total of 266 companies listed on the general index. Shares of Al-Bahri, Marana, SEDCO Capital REIT, Sadarat, and Jaco topped the list of gainers. Conversely, shares of Alujain, Zujaj, Redan, in addition to the leading stocks SABIC and Saudi Group, faced downward pressure, placing them among the biggest decliners.
Parallel market performance (growth)
In tandem with the main market's decline, the parallel market index (Nomu) recorded a slight decrease of 0.2% at the start of trading on Thursday, settling at 23,433 points. Trading value on Nomu reached approximately SAR 820,000, with 212,000 shares traded, while the market capitalization of the companies listed on it stood at SAR 42.2 million. Out of 127 listed companies, only 6 saw their share prices rise, while 12 experienced declines.
The economic 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 a true reflection of the performance of the Saudi economy, which is the largest in the region. The movement of the index is of paramount importance to both local and international investors, especially after the Saudi market's inclusion in global emerging market indices such as MSCI and FTSE Russell, which has increased the flow of institutional foreign investment.
Leading companies, such as SABIC, which saw a decline in this session, play a pivotal role in driving the index due to their significant relative weight. The Saudi market is typically influenced by several macroeconomic factors, including global oil price movements, interest rates, and the performance of global financial markets, which often impacts investor sentiment in the region.
This performance comes at a time when Saudi Arabia continues to implement the objectives of Vision 2030, which pays great attention to developing the financial sector and increasing market depth, through offering more companies for public subscription and encouraging institutional investment, making monitoring daily indicators vital for understanding the overall economic landscape.
