The Saudi stock market's main index, TASI, ended Thursday's trading session, the last of the week, with a notable decline of 1.3%, closing at 10,709 points. This drop occurred amidst trading volume of 6.5 billion riyals, reflecting a cautious sentiment among both local and international investors.
Daily market performance analysis
According to data from the Saudi Stock Exchange (Tadawul), the trading volume during the session reached approximately 270.6 million shares, while the total market capitalization remained stable at around SAR 9.3 trillion. The market activity was predominantly negative, with 154 companies experiencing declines, while only 102 companies saw their share prices rise out of a total of 268 companies listed on the main market. Among the biggest losers were shares of companies such as Research and Media, Al Madinah Cement, and Jaazco, while shares of Al Rajhi Takaful, Jazan Energy Company (JAZADCO), and Petro Rabigh recorded notable gains.
The economic context and its impact on the market
This performance comes amid a volatile global economic context. The Saudi stock market, the largest in the Middle East and North Africa region, is highly sensitive to global economic trends, particularly oil prices, which are a key driver of the national economy. Any fluctuation in energy prices directly impacts investor sentiment and the performance of leading sectors such as petrochemicals and energy. Furthermore, monetary policy decisions by major central banks, such as the US Federal Reserve, affect global capital flows, putting pressure on emerging markets, including the Saudi market.
The importance of the Saudi market and its role in Vision 2030
Monitoring the performance of the Saudi Stock Exchange (TASI) is particularly important as it serves as a vital indicator of the health of the Saudi economy and investor confidence in the economic transformation plans under Vision 2030. Since its inclusion in global emerging market indices such as MSCI and FTSE Russell, the Saudi market has become a major destination for foreign investment, and any downturn could affect its attractiveness in the short term. The market's performance also reflects the challenges and opportunities facing Saudi companies as they strive to expand and adapt to economic changes.
Performance of the parallel market “Growth”
The parallel market, Nomu, dedicated to small and medium-sized enterprises, was not immune to this decline, with its index closing down 0.5% at 22,792 points. Trading volume in Nomu reached approximately SAR 12.9 million, indicating that a cautious and watchful attitude prevailed across various investor segments in the Saudi financial market.
