Saudi Stock Market Soars in First Quarter of 2024
The Tadawul All Share Index in Saudi Arabia experienced a remarkable annual gain of 1,811.46 points, equating to 17.11 percent, reaching a peak of 12,401.56 by the end of the first quarter of 2024, according to official data released.
Key Highlights of the First Quarter
The main index hit its highest close on March 21 at 12,835.65, showcasing the strength of the market. The total equity market capitalization for the main market reached SR10.93 trillion ($2.91 trillion), marking a 9.56 percent increase from the previous year.
Trading activity was also vibrant, with the total value of shares traded soaring by 113.52 percent year on year to reach SR575.89 billion. The volume of shares traded reached 24.12 billion during the first quarter, demonstrating a healthy market appetite.
The number of transactions executed also saw a significant rise, reaching 35.02 million compared to 20.12 million in the same period last year. The market witnessed the listing of three new companies, further diversifying the offerings available to investors.
Parallel Market Growth and IPO Activity
The parallel market Nomu experienced substantial growth, closing at 26,030.03 by the end of March, reflecting a 30.86 percent increase from the previous year. The total market capitalization of the parallel market surged by 31.24 percent year on year to reach SR50.83 billion, indicating investor interest in this segment.
Six IPOs were launched on the Nomu market in the first quarter, showcasing the vibrancy of the market. The derivatives market also saw new offerings, with single stock options in prominent companies being introduced.
Market Outlook and Predictions
Financial services firm Al Rajhi Capital anticipates continued growth in the Saudi stock market in the second quarter of 2024. Their target for the Tadawul All Share Index by the end of June is 12,712 points. Market participants are optimistic about the medium-term prospects of the market, with expectations of consolidation between 12,500-13,000.
Earnings from the banking sector and stable oil prices are expected to support the market’s growth. Al Rajhi Capital forecasts that oil prices will remain above $80 per barrel, contributing to the overall positive sentiment in the market.