The Saudi Stock Exchange's main index, TASI, opened trading on Thursday, the last session of the week, with a notable decline of 0.5%, losing approximately 55 points to settle at 11,101 points. This drop occurred amidst trading volume in the first few minutes, reaching SAR 180 million, with 8.6 million shares traded. The total market capitalization stood at approximately SAR 9.43 trillion.
General context of the performance of the Saudi financial market
The Saudi Stock Exchange (Tadawul) is the largest in the Middle East and North Africa region and plays a pivotal role in achieving the goals of the Kingdom's Vision 2030, which aims to diversify income sources and reduce dependence on oil. In recent years, the market has undergone extensive structural reforms, including inclusion in global emerging market indices such as MSCI and FTSE Russell, enhancing its attractiveness to foreign investors and increasing its depth and liquidity. Tadawul's performance is directly affected by several local and international factors, most notably oil prices, which are a key driver of the Saudi economy, as well as global monetary policies, particularly interest rate decisions by the US Federal Reserve, given the Saudi riyal's peg to the US dollar.
The importance of the declines and their expected impact
The decline at the start of the session reflects a cautious mood among investors, which may stem from natural profit-taking after previous gains or be a response to global economic developments. Domestically, the index's performance impacts the confidence of individual and institutional investors, as well as reflecting the performance of leading sectors such as banking, petrochemicals, and energy. Regionally, the Saudi market often leads the way for stock markets in the Gulf Cooperation Council (GCC) countries, as any fluctuations there can have repercussions for neighboring exchanges. Internationally, foreign investors monitor the Tadawul All Share Index (TASI) as an indicator of the health of the Saudi economy and the attractiveness of the Kingdom's investment environment, particularly given the major projects currently underway.
Sector and stock performance
At the start of trading, shares of 163 companies declined, while shares of only 49 companies rose, out of a total of 268 companies listed on the main market. Shares of Saudi Arabian Pipes, Red Sea, Retal, Salama, and Shaker were among the top gainers in early trading. Conversely, shares of Raya, Al-Aqar, Bupa Arabia, Al-Babtain, and Leejam Sports led the list of decliners.
Parallel market “Growth”
Regarding the parallel market (Nomu), its general index remained stable at the start of trading on Thursday at 23,623 points. Trading volume on Nomu reached approximately SAR 511,000, resulting from the trading of 56,200 shares, with a total market capitalization of SAR 40.6 million. The parallel market saw the share prices of 5 companies rise, while the share prices of 7 companies declined, out of a total of 125 listed companies.
