• Institutional trading in the domestic stock market has risen 23% since the February 2006 collapse



    * Majed Al Khalidi from Riyadh


    Trading rates for individuals in the Saudi stock market declined significantly by 23 per cent since the collapse of February 2006, as the continuing reforms in the stock market have led to increased flows of funds from institutional investors on an ongoing basis.


    According to the monitoring unit of the reports in the newspaper "AlEqtisadiah" that based on data from the financial market "Tadawul" and the data of the Capital Market Authority, trading rates for individuals accounted for more than 95 per cent by the end of 2006, while at the end of last year it reached about 71.7%.

    The decline in favor of the institutional investor amounted to 28.3% by the end of last year.


    The sudden influx of traders during 2006 to the market recording the highest annual turnover of shares at a total value of 5.26 trillion riyals, which is three times the average annual turnover of the last 12 years (2007-2018) of about 1.6 trillion riyals.

    The stock trades in 2010 recorded the lowest annual turnover of about 759.2 billion riyals, while trading in 2007 and 2014 among the years that recorded large trading, which reached the first 2.55 trillion riyals and the second 2.14 trillion riyals, taking into account the difference in the number of companies to be traded.


    Since then, the Saudi stock market has witnessed many significant developments, which aims to increase market attractiveness, improve efficiency, protect investors and reduce risk, including the reduction of restrictions on foreign investment, as well as the creation of a new market for small and medium-sized enterprises or the so-called parallel market "Nomu".

    In addition, it witnessed the developments that have taken place, the adjustment of the time period for settlement of securities transactions, and to enable lending and borrowing securities in addition to short selling in order to create new investment opportunities.


    The overall index of the Saudi market "TASI" recorded its highest point in February 2006 at levels of 20966 points.

     The decline continued to reach 4223 points by the end of 2008, while the market then recorded the highest level at 11159 points during 2014 before closing in 2018 at 7826 points.


    * Economic Reports Unit ​

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