The Saudi stock market's main index, Tadawul All Share Index (TASI), opened slightly lower on Thursday, declining 0.15% to 10,525 points. This drop occurred in the first few minutes of trading, with total turnover reaching approximately SAR 78.6 million, reflecting a cautious and watchful stance among traders at the close of the week's trading.
According to data from the Saudi Stock Exchange (Tadawul), the volume of shares traded at the start of trading reached approximately 3.34 million shares, while the total market value of listed shares remained stable at huge levels of approximately 8.819 trillion riyals, which confirms the depth and strength of the Saudi financial market despite the usual daily fluctuations.
Company and sector performance
The session began with a clear divergence in the performance of listed companies, with red dominating the screens as shares of 138 companies declined, compared to gains for only 79 companies out of a total of 266 listed on the general index. This disparity reflects the nature of day trading and quick profit-taking that often occurs at the end of the week.
In detail, the most active and influential stocks topped the list of gainers:
- Jazz Company
- CGS
- Baazeem Company
- Farm Markets
- Feasibility of REIT Al Haramain
On the other hand, the list of the most declining stocks included companies such as “Mutakamilah”, “Al-Ahli REIT 1”, “Red Sea”, “Artex”, and “Maadaniyah”.
Economic context and the importance of the financial market
The movements of the Saudi stock market are of particular importance as it is the largest financial market in the Middle East and North Africa region, and it is a mirror reflecting the performance of the Saudi economy, which is witnessing huge structural transformations within the Kingdom's Vision 2030. The stability of the index above the 10,000 point mark is an important technical and psychological indicator for investors, and reflects confidence in the local investment environment.
Furthermore, a market capitalization exceeding 8 trillion riyals places the Saudi market among the world's major markets, attracting foreign capital inflows, especially after its inclusion in global emerging market indices. The market is typically influenced by several factors, including global oil prices, interest rates, and the economic data of leading companies in the banking, energy, and petrochemical sectors.
Parallel Market Index “Nomu”
Meanwhile, the parallel market index, Nomu, bucked the trend of the main market, opening Thursday's trading session with a 0.4% increase, reaching 23,295 points. Trading volume on Nomu reached approximately 336,000 riyals, with nearly 30,000 shares traded, for a market capitalization of 42 million riyals.
The performance of the parallel market reflects the dynamism of the Kingdom's small and medium-sized enterprises (SMEs) sector, with shares of eight companies rising at the start of trading compared to only five declining out of 126 listed companies. The Nomu Parallel Market is a vital platform for enabling promising companies to access financing and expand, thus contributing to the diversification of the national economy.
