The Saudi Stock Exchange's main index (TASI) opened slightly lower on Monday, declining 0.3% to 11,197 points. This performance came amid modest trading volume at the start of the session, reaching SAR 236.3 million, resulting from the trading of approximately 18 million shares. The total market capitalization stood at SAR 9.505 trillion, reflecting the market's significant economic weight.
Market and sector performance details
At the start of the session, shares of 182 companies declined, while shares of 63 others rose. Among the biggest losers were major companies such as Solutions, United Insurance, Tanmia, Sulaiman Al Habib, and Elm. On the other hand, the top gainers included companies like Kingdom Holding, Maharah, and Arabian Cement. This divergence in company performance reflects a cautious and watchful stance among investors regarding certain sectors.
As for the parallel market (Nomu), its index recorded a larger decline of 0.85%, with a turnover of SAR 750,000 resulting from the trading of 101,000 shares. The parallel market saw the shares of 4 companies rise, while those of 10 companies declined, 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 stock market in the Middle East and North Africa region, and a major hub for both domestic and foreign investment. Its international significance has grown following its inclusion in major global emerging market indices such as MSCI and FTSE Russell, which has opened the door to substantial foreign investment inflows. These developments are aligned with the goals of Saudi Vision 2030, which aims to deepen the financial markets and diversify the economy away from oil dependency. The listing of Saudi Aramco, the global oil giant, is one of the most prominent events that has further enhanced the market's global standing.
Expected impacts locally and internationally
The performance of the Tadawul All Share Index (TASI) impacts not only local investors but also regionally and internationally. Domestically, the index reflects the health of the Saudi economy and investor confidence. Regionally, given its size, Tadawul often leads the performance of other Gulf stock markets. Internationally, foreign investors monitor the market's performance as an indicator of the stability of the world's largest oil exporter's economy, particularly given its close link to energy prices and global geopolitical tensions. Consequently, any fluctuation in the Saudi market, however slight, is closely watched to understand investment trends in emerging markets and the region as a whole.
