Saudi Stock Index Rises to 10,911.58 Points in Positive Session

The Saudi main stock index (TASI) closed higher on Tuesday, gaining 3.52 points to settle at 10,911.58 points, with total trading value reaching approximately SAR 4.9 billion, according to the Saudi Press Agency’s daily economic bulletin. The market saw 275 million shares traded, with 96 listed companies recording gains while 160 companies closed lower.

Context and Background

The Saudi stock market, operated by the Saudi Exchange (Tadawul), is the largest and most liquid equity market in the Middle East and North Africa region. This latest session reflects continued investor confidence in the Kingdom’s economic fundamentals, underpinned by robust government reforms and the private sector’s growing role under Vision 2030. The modest uptick comes amid a broader trend of stability and gradual growth, as Saudi Arabia diversifies its economy away from oil dependence and enhances its capital market infrastructure.

The parallel market, NOMU, also closed higher, rising 67.80 points to 21,583.55 points, with trading value of SAR 29 million and volume of 2.9 million shares. This dual-market performance underscores the vitality of Saudi Arabia’s financial ecosystem, which now offers opportunities for both established companies and emerging enterprises.

Key Details

According to the official report, the top gainers included shares of KEMY, Al-Itihad, Cenomi Retail, LUBREF, and Saudi Arabian Mining Company (Ma’aden), while the most significant declines were recorded by Redan, Jarir Marketing, MIS, SEDCO Capital REIT, and Chemical Company. The percentage changes ranged between +9.96% and -4.55%.

In terms of trading activity, the most traded shares by volume were Americana, Al Kathiri, Saudi Aramco, Alinma Bank, and Chemical Company. By value, the most active were Al Rajhi Bank, Saudi Aramco, Alinma Bank, National Commercial Bank (now SNB), and Petro Rabigh. These companies represent key sectors such as banking, energy, retail, and petrochemicals, reflecting the diversified nature of the Saudi economy.

Implications and Impact

The steady performance of the Saudi stock market signals resilience and growing international interest. Foreign investors have increasingly participated in Tadawul following the inclusion of Saudi equities in major global indices such as MSCI, FTSE, and S&P Dow Jones. The market’s stability is crucial for funding the ambitious giga-projects under Vision 2030, including NEOM, the Red Sea Project, and Qiddiya, which rely on both public and private capital.

Regionally, a robust Saudi market often serves as a bellwether for Gulf Cooperation Council (GCC) markets, given the Kingdom’s economic weight. The positive close reinforces confidence among regional and international portfolio managers, particularly in the context of ongoing economic transformation and fiscal discipline.

Vision 2030 Alignment

This market activity aligns directly with Saudi Arabia’s Vision 2030, which seeks to develop a vibrant capital market that supports economic diversification, fosters innovation, and provides attractive opportunities for domestic and international investors. The Financial Sector Development Program, a key Vision 2030 pillar, aims to increase the depth and efficiency of the stock market, expand the investor base, and enhance market transparency. As the Kingdom continues to implement structural reforms, the equity market is expected to play a pivotal role in financing the private sector and unlocking new growth avenues, ultimately contributing to the realization of a thriving, sustainable economy.

20 Questions

Q1. What is the Saudi main stock index?

A1. The Saudi main stock index, also known as TASI, is the primary benchmark for stocks listed on the Saudi Exchange (Tadawul). It tracks the performance of all listed companies and serves as a key indicator of the Saudi stock market’s health and overall economic sentiment.

Q2. How many points did TASI gain on the reported day?

A2. TASI gained 3.52 points on the reported day, closing at 10,911.58 points. This slight increase reflects a stable and positive trading session, with modest gains across several sectors.

Q3. What was the total trading value on that day?

A3. The total trading value reached approximately SAR 4.9 billion riyals, as reported by the Saudi Press Agency. This level of trading activity indicates healthy liquidity and investor participation in the market.

Q4. How many shares were traded during the session?

A4. About 275 million shares were traded during the session. This volume is typical for the Saudi market, which is known for its high liquidity compared to other regional exchanges.

Q5. How many companies saw their stock prices rise?

A5. In the session, 96 companies saw their stock prices rise, while 160 companies experienced declines. This mixed performance is common in a market with a wide range of sectors and individual company factors.

Q6. Which companies were among the top gainers?

A6. The top gainers included KEMY, Al-Itihad, Cenomi Retail, LUBREF, and Ma’aden. These companies benefited from positive sector trends or company-specific news, leading to higher share prices.

Q7. Which stocks faced the most significant declines?

A7. The most significant declines were seen in Redan, Jarir Marketing, MIS, SEDCO Capital REIT, and Chemical Company. These stocks fell within the overall market range of -4.55% to +9.96%.

Q8. What was the performance of the NOMU parallel market?

A8. The NOMU parallel market, which lists smaller and emerging companies, also closed higher, gaining 67.80 points to end at 21,583.55 points. Its trading value was SAR 29 million with a volume of 2.9 million shares.

Q9. Which stocks were the most active by volume?

A9. The most active by volume were Americana, Al Kathiri, Saudi Aramco, Alinma Bank, and Chemical Company. These high volumes indicate strong investor interest and frequent trading in these securities.

Q10. Which stocks led in trading value?

A10. By value, the most active stocks were Al Rajhi Bank, Saudi Aramco, Alinma Bank, National Commercial Bank (SNB), and Petro Rabigh. These large-cap stocks typically dominate value turnover.

Q11. Why is the Saudi stock market important for Vision 2030?

A11. The stock market is a vital channel for financing Vision 2030 projects, enabling private sector participation and attracting foreign investment. A deep and efficient capital market supports economic diversification and sustainable growth.

Q12. How does the Saudi stock market compare to other regional markets?

A12. The Saudi stock market is the largest in the GCC and the Middle East, with a market capitalization exceeding $2 trillion. It is also one of the most liquid and internationally integrated markets, with foreign ownership limits being gradually eased.

Q13. What is the role of the Saudi Exchange (Tadawul)?

A13. The Saudi Exchange (Tadawul) is the sole entity authorized to list and trade securities in Saudi Arabia. It operates the main market and the NOMU parallel market, providing transparent and efficient trading platforms.

Q14. How are foreign investors participating in the Saudi market?

A14. Foreign investors can participate through the Qualified Foreign Investor (QFI) program, which allows approved institutions to directly own Saudi stocks. Additionally, foreign ownership is permitted in many sectors, enhancing market internationalization.

Q15. What is the Financial Sector Development Program?

A15. The Financial Sector Development Program is one of the Vision 2030 realization programs. It aims to strengthen the financial sector, including capital markets, to support economic growth, increase financial inclusion, and enhance the competitiveness of the Saudi financial system.

Q16. How does the performance of Saudi Aramco affect the index?

A16. Saudi Aramco is the largest company on TASI, with a significant weighting. Its stock price movements have a major impact on the overall index, as seen in its high trading activity by value.

Q17. What are the typical trading hours for the Saudi stock market?

A17. The Saudi Exchange operates from Sunday to Thursday, with trading sessions typically from 10:00 AM to 3:00 PM Saudi time. These hours align with international markets, facilitating global participation.

Q18. How does the market’s performance reflect economic confidence?

A18. A stable or rising stock market often signals investor confidence in the economy’s future prospects. The recent positive close suggests optimism about Saudi Arabia’s economic reforms, corporate earnings, and long-term growth potential.

Q19. Are there any tax incentives for investing in the Saudi market?

A19. Saudi Arabia has a favorable tax regime for investors, with no capital gains tax on securities trading for individuals and a competitive corporate tax rate. This encourages both local and international investment.

Q20. What is the outlook for the Saudi stock market?

A20. The outlook remains positive, supported by high oil prices, government spending, and Vision 2030 initiatives. Analysts expect continued growth as new listings, including in the technology and tourism sectors, attract more investors.

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