The Saudi Stock Exchange's main index (TASI) opened Tuesday's trading session on a positive note, recording a slight increase of 0.2% to reach 11,348 points. This balanced performance comes as investors await local and global economic data and reflects a cautious sense of confidence among traders. Trading volume in the first few minutes of the session reached approximately 322 million riyals, resulting from the trading of nearly 14.5 million shares. The total market capitalization remained stable at around 9.490 trillion riyals, confirming the market's position as the largest stock exchange in the Middle East and North Africa region.
General context and importance of the Saudi stock market
The Saudi Stock Exchange (Tadawul) is the cornerstone of the Kingdom's financial sector and plays a pivotal role in achieving the goals of Saudi Vision 2030. Vision 2030 aims to diversify the economy away from oil, and developing an advanced and attractive financial market for both foreign and domestic investment is an integral part of this strategy. Over the years, the market has undergone significant structural reforms, including its inclusion in global emerging market indices such as MSCI and FTSE Russell, which has enhanced its liquidity and transparency and made it a prime destination for international investment fund managers. The performance of the Tadawul All Share Index (TASI), which tracks the performance of the largest listed companies, not only reflects the health of these companies but is also considered an accurate indicator of the overall direction of the Saudi economy.
Details of the trading session and its impact
The morning session saw a dominance of rising stocks, with 162 companies recording gains in value, compared to 66 companies whose shares declined, out of a total of 268 companies listed on the main market. This broad base of winning stocks indicates positive momentum distributed across several sectors and not limited to specific leading stocks. Among the top performing stocks were those of companies such as Qaw Telecom, Enaya, Al-Andalus, Retal, and Al-Fakhariya. Locally, this performance boosts the confidence of individual and institutional investors, while regionally, the Saudi market often leads the trends of neighboring Gulf markets due to its size and influence. Internationally, the stability and attractiveness of the Saudi market contribute to the inflow of foreign capital, which in turn supports exchange rate stability and the financing of major development projects in the Kingdom.
Parallel market performance (growth)
In contrast, the Nomu Parallel Market Index, dedicated to small and medium-sized enterprises (SMEs), opened trading with a slight decline of 0.3%, settling at 23,938 points. Trading volume on Nomu reached approximately SAR 2 million, with 54,600 shares traded. Despite this slight decrease, the Nomu market plays a strategic role in supporting entrepreneurship and providing a financing platform for promising companies, thus contributing to job creation and stimulating innovation within the Saudi economy.
