The Tadawul All Share Index (TASI) saw a slight decline at the start of Wednesday's trading
The Saudi Stock Exchange's main index, TASI, opened slightly lower on Wednesday, continuing its volatile performance of recent sessions. The index fell 0.2% to 10,882 points, with trading valued at approximately SAR 171.3 million during the first few hours of the session. The volume of shares traded reached about 8.7 million, while the total market capitalization remained stable at around SAR 9.4 trillion.
The session saw mixed performance among listed companies, with 158 companies seeing their shares rise, while 85 companies experienced declines out of a total of 268 companies listed on the main market. Among the top gainers were shares of Marafiq, Gypsum Co., Rasen, Gulf General, and Saudi German Healthcare. Conversely, shares of Etihad Etisalat, Gulf Training, Gas, Kayan Saudi, and Abu Moati led the list of decliners.
General context of the Saudi stock market
The Saudi Stock Exchange (Tadawul) is the largest stock market in the Middle East and North Africa region and plays a pivotal role in the national economy. With the launch of Saudi Vision 2030, the market has gained strategic importance as a key instrument for attracting foreign investment and diversifying income sources away from oil. The market has undergone significant structural reforms in recent years, including its inclusion in global emerging market indices such as MSCI and FTSE Russell, which has enhanced its liquidity and attractiveness to international investors. Furthermore, the initial public offering (IPO) of Saudi Aramco in 2019 was a landmark event that placed the Saudi market at the heart of the global financial landscape.
The importance of performance and the impact of local and global factors
The performance of the Tadawul All Share Index (TASI) is a reflection of the Saudi economy, influenced by a range of local, regional, and international factors. Domestically, economic growth data, inflation rates, and government spending on major projects directly impact investor sentiment. Globally, oil prices remain the most influential factor, given the link between the profits of many leading companies, particularly in the energy and petrochemical sectors, and global energy prices. Furthermore, monetary policy decisions by major central banks, most notably the US Federal Reserve, significantly affect Gulf markets, including the Saudi market, due to the peg of local currencies to the US dollar, making interest rate decisions a crucial factor in determining market trends.
