Shares of 24 Saudi companies hit their lowest historical levels on the Tadawul stock exchange
The Saudi stock market (TASI) witnessed a sharp decline last week, affecting a wide range of listed companies and resulting in 24 companies recording their lowest share prices ever. This performance comes amid volatile economic conditions and selling pressure that directly impacted traders' risk appetite.
List of companies that recorded historic lows
A detailed analysis by Okaz newspaper revealed that selling pressure was particularly concentrated on small and medium-sized stocks, pushing prices to unprecedented lows. The following is a complete list of companies and their prices at their historical lows:
- Wires: 16.88 riyals.
- UEC: 24.50 Riyals.
- Pottery: 18.60 riyals.
- Al-Jawf Cement: 5.87 riyals.
- Talco: 31.20 riyals.
- Al-Umran: 22.30 riyals.
- CGS: 7.65 riyals.
- Printing and packaging: 7.35 riyals.
- Dheeb: 33.14 riyals.
- Lumi: 42.90 riyals.
- Flynas: 58 riyals.
- Redan: 18.65 riyals.
- Ready: 11.54 riyals.
- Saco: 23.35 riyals.
- Construction station: 50.50 riyals.
- Farm Markets: 13.02 Riyals.
- Medicine: 47.90 riyals.
- Modern Mills: 25.94 Riyals.
- Production: 26.90 riyals.
- Equipment House: 29.56 Riyals.
- Faqih: 32.16 riyals.
- Flexible: 8.96 riyals.
- Aseeg: 6.71 riyals.
- Facilities: 29.30 riyals.
Economic context and reasons for the decline
This performance cannot be separated from the overall economic landscape, as the market is undergoing a comprehensive asset revaluation phase. The financial market is typically affected by liquidity fluctuations and interest rates, which put pressure on companies' profit margins, particularly in the industrial, consumer, and service sectors. This volatility reflects investor caution and their anticipation of new catalysts that could restore buying momentum to the market.
Financial analysts believe that these stocks reaching historical price levels could represent an "investment opportunity" for long-term investors, given the attractive price-to-earnings ratios at these levels. However, the continuation of the recovery remains primarily dependent on improved liquidity rates and a clearer global and local economic outlook in the coming weeks.
Weekly roundup: Winners and losers
On a weekly basis, the Tadawul All Share Index (TASI) closed down 2.7%, losing approximately 305 points to close at 10,947 points, compared to the previous week's close of 11,252 points. The vast majority of stocks declined, with 231 companies seeing their share prices fall, while only 34 companies saw their share prices rise, and 3 companies remained unchanged.
Among the hardest hit, Raya the list of decliners with a sharp drop of 19%, followed by Naseej at 12%, and Jahez at 11%. Conversely, Enaya the trend, leading the gainers with a 15% increase, followed by Dar Al Arkan with a 12% rise, indicating selective trading despite the overall negative sentiment.
