TASI reduces its losses and the market value gains 72 billion riyals
Today’s trading session on the Saudi Stock Exchange (TASI) witnessed a dramatic scenario that combined a sharp decline in the general index with a significant increase in the total market value, in a paradox that reflects the nature of the weighting of leading companies in the market.
Opening Details and Rebound:
The index opened with a sharp and unexpected decline, dropping to 10,195 points, a drop of 4.8%, losing approximately 514 points in the first few minutes. This opening moment marked the index's lowest point of the day. However, the market demonstrated remarkable resilience, with buying power quickly entering the market and seizing opportunities, significantly reducing losses during the first hour of trading. The index rebounded to 10,594.7 points, limiting losses to just 1.07%, a loss of 114 points. This reflects a high degree of volatility, with the difference between the lowest and highest points reaching approximately 399 points in the first two hours.
The secret behind the rise in market capitalization:
Despite the overall market index being in the red, the market capitalization of listed companies bucked the trend, registering a remarkable increase of SAR 72.38 billion. This contrast is primarily attributed to the strong performance of the global oil giant Saudi Aramco, whose shares rose by more than 2.5%, reaching SAR 25.76 per share. Given that Aramco accounts for the lion's share of the total market capitalization, at 67.34%, any positive movement in its stock is immediately reflected in a significant increase in the overall market capitalization, even if the share prices of other influential companies in the index calculation decline.
The economic context and market significance
: The Saudi stock market (TASI) is the largest financial market in the Middle East and North Africa region and is considered a true reflection of the strength of the Saudi economy. Such movements are of particular importance to local and international investors, as the speed of the rebound and the reduction of losses indicate high liquidity and confidence from financial institutions in the market's medium- and long-term future.
Looking ahead and influenced by the vision,
these developments come amidst the massive economic transformation underway in the Kingdom as part of Vision 2030, which aims to diversify income sources and position the Saudi financial market as a global investment destination. The market's ability to absorb price shocks and recover confirms the maturity of its traders and the market's depth, enhancing its attractiveness as one of the world's most important emerging markets, especially given its close link to energy prices and global economic shifts.
