The Tadawul All Share Index (TASI) showed relative stability at the start of trading
The Saudi Stock Exchange's main index (TASI) opened relatively stable on Thursday, registering 11,165 points at the start of the session. Initial trading volume reached approximately 246 million riyals, resulting from the trading of nearly 28 million shares. This quiet start reflects a state of anticipation and caution among investors, who are closely monitoring local and global economic developments. The total market capitalization of the index reached 9.492 trillion Saudi riyals.
Despite the overall market index remaining stable, market details revealed a mixed performance among listed companies. Shares of 160 companies declined, while only 71 companies saw their share prices rise, out of a total of 268 companies listed on the main market. Among the top gainers were Saudi Kayan, Petro Rabigh, Tasnee, MedGulf Insurance, and Al-Mutawakkil. Conversely, shares of Sadafco, Tihama, Al-Mousa, Al-Tatweer Food, and Retal led the list of decliners.
Parallel market performance 'growth'
In a related development, the Nomu Parallel Market Index opened positively, rising 0.45% to reach 23,588 points. Trading volume on Nomu reached approximately SAR 1.15 million, with 203,000 shares traded, for a total market capitalization of SAR 40.5 million. Ten companies saw their share prices rise, while four companies experienced declines, out of a total of 125 listed companies.
General context and importance of the Saudi stock market
The Saudi Stock Exchange (Tadawul) is the largest stock market in the Middle East and North Africa region, and its performance is considered a key indicator of the health of the Saudi economy, the largest in the Arab world. The market's performance is taking place within the context of the major economic transformations the Kingdom is undergoing as part of Vision 2030, which aims to diversify income sources and reduce dependence on oil. The market plays a pivotal role in this vision by attracting foreign investment, facilitating privatization, and financing major projects. The listing of the giant Saudi Aramco company was a prime example of the market's strategic importance.
Local and international impacts on 'TASI'
The performance of the Tadawul All Share Index (TASI) is influenced by a complex interplay of factors. Globally, oil prices remain a key market driver due to the significant weight of the energy and petrochemical sectors. Furthermore, global monetary policy decisions, particularly interest rates set by the US Federal Reserve, directly impact investor appetite for equities because of the Saudi Riyal's peg to the US Dollar. Domestically, economic data related to growth, inflation, and government spending play a crucial role in shaping market trends. The current stability suggests that investors are weighing the promising opportunities within the domestic economy against the potential risks in the global economic environment.
