The market capitalization of all companies listed on the main Saudi stock market index, TASI, is on the verge of achieving a historic milestone, as it has reached around 9.94 trillion riyals. This figure places the market just 59.97 billion riyals away from the 10 trillion riyals threshold, indicating a robust momentum in the market's financial performance.
In the last trading session, listed companies recorded gains of approximately 25.67 billion riyals, contributing to the enhancement of market capitalization. Additionally, the market value of stocks held by foreign investors reached about 460.625 billion riyals, with foreign investors owning around 13.25 billion shares, which equates to 4.63% of the total market shares.
Details of the Event
According to reports, foreign investors hold strategic stakes in several companies, including Bupa Arabia at 43.25%, Arab Bank at 40%, CGS at 35%, Arabian Drilling at 34.3%, Alawwal Bank at 31%, and Chubb at 30%, among others.
The reports also indicated that shares and units of many companies and funds are trading below their book values, opening the door to new investment opportunities. These companies include Mabco, Manufacturing, Al-Lahain, Sabic, Yansab, along with several cement companies.
Background & Context
The Saudi stock market is considered one of the largest financial markets in the region and has witnessed significant growth in recent years due to economic reforms implemented by the government. These reforms aim to attract foreign investments and enhance confidence in the market.
The listing of new companies and increased economic activity have also contributed to the overall performance of the market, positively reflecting on the national economy. As the market approaches the 10 trillion riyals threshold, it is expected that this positive trend will continue in the near future.
Impact & Consequences
Surpassing the 10 trillion riyals market capitalization will enhance the Saudi market's position on both regional and international levels, attracting more foreign investments. This achievement could also lead to improved credit ratings for the market, facilitating companies' access to necessary financing for growth.
Furthermore, the strong performance of the market reflects increasing confidence from investors, which may lead to heightened commercial and economic activity in the Kingdom. This will contribute to achieving the goals of Saudi Vision 2030.
Regional Significance
The success of the Saudi market serves as a model for other Arab markets, as successful experiences can help enhance investments in the region. With growing interest in financial markets, this could lead to an improved business environment in other Arab countries.
In conclusion, the approach of the Saudi stock market towards the 10 trillion riyals mark is a significant achievement, reflecting the strength of the Saudi economy and its ability to attract investments, thereby contributing to stability and growth in the region.