A collective decline at the start of the week
The Saudi Stock Exchange's main index, TASI, ended trading on Sunday, the first session of the week, with a notable decline of 1.9%, closing at 11,167 points. This drop came amid widespread selling pressure, with trading volume reaching approximately SAR 4.4 billion, through the trading of nearly 208 million shares. These figures reflect a cautious sentiment among investors at the start of the week's trading.
General context and importance of the Saudi financial market
The Saudi Stock Exchange (Tadawul) is the largest in the Middle East and North Africa region in terms of market capitalization, which is approximately SAR 9.5 trillion. It plays a pivotal role in the national economy as a key instrument for corporate financing and supporting economic diversification plans within the framework of Saudi Vision 2030. Over the past years, the market has witnessed significant structural developments, most notably its inclusion in global emerging market indices such as MSCI and FTSE Russell, which has enhanced its attractiveness to foreign investors and increased its depth and liquidity. Therefore, the performance of the Tadawul All Share Index (TASI) is viewed as a reflection of investor confidence in the Saudi economy and its responsiveness to global changes.
Trading session details and stock performance
Today's session was dominated by losses, with 227 out of 268 listed companies on the main market seeing their shares decline, while only 33 companies saw their shares rise. This widespread decline suggests that investor sentiment was affected by broader factors rather than news specific to individual companies.
Among the top performing stocks were MedGulf Insurance, Al-Aseel, Avalon Pharma, Al-Ahli REIT 1, and Al-Drees. Conversely, the worst performing stocks were led by major and leading companies such as AMAC, Maaden, Sidq, NADEC, and Al-Taamir, further weighing on the overall index.
Potential effects and influencing factors
The performance of the Saudi stock market is often influenced by a combination of local, regional, and international factors. Globally, oil prices, a key driver of the Saudi economy, remain a crucial factor. Monetary policy decisions by major central banks, particularly the US Federal Reserve, also directly impact investor risk appetite in emerging markets. Locally, this decline may reflect profit-taking after previous gains, or anticipation of key economic data or quarterly corporate earnings reports. Investors are also closely monitoring any geopolitical developments in the region that could affect market stability.
Performance of the parallel market “Growth”
The parallel market, Nomu, dedicated to small and medium-sized enterprises (SMEs), was not immune to this decline, with its index closing down 0.7% at 23,734 points. Trading value on Nomu reached approximately SAR 21.5 million, with a volume of 2.4 million shares traded. The parallel market saw 49 companies' shares decline compared to 31 that rose, out of a total of 125 listed companies, reflecting the overall market downturn.
