The general index declined at the start of trading
The Saudi Stock Exchange's main index (TASI) opened trading on Monday with a notable decline, falling 0.5% to 11,213 points. The first few minutes of the session saw trading valued at approximately 372 million riyals, with a volume of nearly 19 million shares traded. This performance comes amidst anticipation from investors regarding several local and global economic developments.
General context and sector performance
The performance of the Saudi stock market, the largest in the Middle East and North Africa region, reflects a cautious stance among investors. The market is directly affected by global oil prices, the primary driver of the Saudi economy, as well as by global monetary policy trends, particularly the US Federal Reserve's interest rate decisions, given the Saudi riyal's peg to the dollar. These trading activities are taking place within the context of the Kingdom's efforts to diversify its economy under Vision 2030, which aims to reduce dependence on oil and strengthen the role of the private sector, thus making the performance of non-oil companies a key focus.
Stock movement analysis
According to data from the Saudi Stock Exchange (Tadawul), early trading showed a majority of declining stocks, with 135 companies seeing their shares fall, while 103 companies saw their shares rise, out of a total of 268 companies listed on the main market. Leading the gainers were heavyweight companies in diverse sectors, such as Al Othaim Markets (retail), ACWA Power (energy and utilities), and AMAC and Luberef (basic materials and energy). Conversely, leading stocks in the banking and industrial sectors experienced selling pressure, with Arab National Bank, National Commercial Bank, Dar Al Arkan, and Saudi Cable Company among the biggest losers, negatively impacting the overall market index.
Parallel market performance (growth)
Unlike the main market, the parallel market index (Nomu), dedicated to small and medium-sized enterprises (SMEs), opened slightly higher by 0.1%, settling at 23,637 points. Trading value on Nomu reached approximately SAR 704,000, with a volume of 137,700 shares. The market saw eight companies' shares rise while three declined, indicating a relatively positive performance in this sector, which is considered a vital pillar for supporting entrepreneurship and innovation in the Kingdom.
