35 companies in TASI record their lowest historical low despite the index's rise

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35 companies in TASI record their lowest historical low despite the index's rise

The Saudi stock market (TASI) witnessed a striking paradox in its recent trading sessions, as a detailed analysis by the Okaz newspaper revealed that 35 listed companies recorded their lowest historical share prices, even as the general index closed in positive territory. This situation raises numerous questions about the disparity in performance among listed companies and the direction of liquidity within the market.

Trading session details and index movement

Despite selling pressure affecting a wide range of stocks, the Tadawul All Share Index (TASI) managed to close 0.34% higher, adding 36.81 points to reach 10,984.06 points. This rise was accompanied by growth in the total market capitalization of listed companies, which jumped to SAR 9.46 trillion, registering market gains of SAR 74.15 billion in a single session, amidst cash liquidity of approximately SAR 4.4 billion.

Market depth and performance variation

The overall market picture reflects a sharp divergence in stock performance. While the index rose, supported by some leading stocks, the balance of traded shares tilted significantly towards decline. Market data showed that 202 companies saw their share prices fall, compared to only 59 that rose, while 6 companies maintained their prices without change. This disparity suggests that liquidity may have been concentrated in the leading stocks with a heavy weight in the index, while mid- and small-cap stocks suffered pressures that drove them to unprecedentedly low price levels.

Signs of historical lows for companies

The fact that 35 companies have reached historic lows is a significant indicator for investors and financial analysts. This decline reflects fundamental changes in the market's valuation of these companies, whether due to company-specific circumstances or the impact of pressing macroeconomic factors. Investors typically view these price levels with caution. While some see them as promising investment opportunities to enter at low prices (value investing), others consider them a negative signal that warrants waiting until the market stabilizes.