Riyadh – Mubasher: The Saudi Stock Exchange (Tadawul) achieved gains in 2019, rising for the fourth consecutive year, with a more than SAR 7 trillion ($1.9 trillion) leap in market capitalization supported by newcomer Saudi Aramco, which joined after the largest initial public offering (IPO) the world has ever known.
The Tadawul All Share Index (TASI) added 7.19% or 562.5 points as it closed the year at the level of 8,389.23 points.
This is the highest rising streak for the Saudi bourse since the period between 1999 and 2005, Mohanad Arekat, Senior Analyst at CFI told Mubasher.
The technical analysis expert further indicated that TASI needs to exceed the 8,440-point resistance level that represents a downward trend by mid-year. As for long ranges, the 9,400-point level is seen as a resistance level since 2015, he further noted.
Meanwhile, the Saudi market cap increased by 385% as it added SAR 7.166 trillion throughout last year, reaching a total SAR 9.025 trillion ($2.41 trillion), compared with SAR 1.858 trillion by the end of 2018.
Market Analyst Saud Al Mateer believes 2019 was a very special year for Tadawul as it joined three global indices, and completed the inclusion in the MSCI and S&P emerging market indices, with the FTSE Russell inclusion set to be completed in March.
The Saudi exchange ended the year as the seventh-largest stock market in the world, following Germany and surpassing India, Al Mateer told Mubasher, noting that with the market cap exceeding SAR 9 trillion it is now equivalent to 3.5 times the Kingdom’s gross domestic product (GDP).
The ending year recorded SAR 880.139 billion in traded values, compared with SAR 870.87 billion in 2018, while traded volumes amounted to of SAR 33.414 billion.
Consumer services was the best performing market sector index as it increased by 34.33%, while media was the top decliner as it lost 7.63%.
The leading market sectors achieved variable gains, as banks and energy rose by 12.39% and 12.24%, while materials levelled up by 1.61%.
Q4 highlighted by Aramco listing
TASI rose by 3.68% during the fourth quarter (Q4) of 2019, with the market cap growing by SAR 8.995 trillion, largely due to the listing of Aramco.
The energy sector index surged by 10.2% in Q4, while banks and materials increased by 7.29% and 3.37%, respectively.
In the last three months, traded volumes increased to 8.98 billion shares, up by 17.31% from the 7.66 billion traded shares in the previous quarter.
Similarly, values went up by 11.46% to SAR 232.547 billion, compared with SAR 208.633 billion in Q3-19.
The two best months for TASI in 2019 were the year’s first and last. As it gained 6.75% or 530.17 points in December, making it is second-best monthly gains in the year, following only January when it added 9.37%.
On the other hand, May saw the benchmark index worst performance, as it lost 8.47%.
In December, market capitalization increased by 7.151 trillion.
Traded volumes nearly doubled last month, increasing by 93.62% to SAR 4.306 billion shares, compared with 2.22 billion shares in November.
Likewise, traded values grew by 95.17% to SAR 113 billion, compared with SAR 57.89 billion in the previous month, with a daily average of SAR 4.9 billion. This marked the second-largest monthly turnover volume, following May that recorded SAR 110 billion.