Significant variation in the performance of the Saudi stock market
witnessed The Saudi stock market a notable divergence in performance today, with the parallel market index, Nomu, recording a strong rise, while the main market index, Tadawul All Share Index (TASI), declined. This divergence reflects the dynamics of trading and investor sentiment in the largest financial market in the Middle East and North Africa region, which serves as a mirror of the Saudi economy, the largest in the Arab world.
The main index declined amid billion-dollar trading
The Saudi stock market's main index closed down 24.63 points, settling at 10,995.44 points. Total trading value on the main market reached approximately SAR 5.3 billion. According to the Saudi Press Agency's daily economic bulletin for the stock market, 275 million shares were traded. Shares of 95 companies rose during the session, while shares of 157 companies declined, reflecting profit-taking or a wait-and-see approach among traders amidst economic developments.
The parallel market "growth" recovers
On the other hand, the Saudi parallel market index, Nomu, saw a significant jump of 230.98 points, closing at 22,995.00 points. Trading volume in the parallel market reached SAR 20 million, with over two million shares traded. It's worth noting that Nomu was launched in 2017 as part of the Saudi financial market development plans, aiming to provide a financing platform for small and medium-sized enterprises (SMEs) with more flexible listing requirements, thus supporting the goals of Saudi Vision 2030 in diversifying the national economy and bolstering the private sector.
Top performing and worst performing companies
Regarding company performance, shares of Maharah, Tasheel, SEDCO Capital REIT, Al-Munajem, and Al-Aqaria topped the list of gainers. Conversely, shares of Emaar, Nadec, Masar, Redan, and Kingdom Holding led the decliners. The percentage changes during the session ranged between a gain of 7.36% and a loss of 4.52%.
Most actively traded stocks in the market
In terms of trading activity, shares of Maharah, Americana, Saudi Aramco, Kayan Saudi, and Sadarat accounted for the largest share of trading volume. In terms of value, leading stocks such as Saudi Aramco, Al Rajhi, ACWA Power, Eastern Pipes, and Maharah topped the list of most actively traded stocks.
Economic context and market impact
This performance comes amidst global and regional economic variables that play a pivotal role in directing liquidity. The shares of leading companies like Aramco are affected by global oil prices, while the banking sector, such as Al Rajhi Bank, is impacted by interest rate policies. Furthermore, the inclusion of the Saudi market in global emerging market indices like MSCI and FTSE Russell in recent years has boosted foreign investment inflows and made the market more robust and resilient to volatility, thus solidifying the Kingdom's position as a leading investment destination.
