The value of stocks traded on Tadawul rose 60.5% q-o-q to SAR 576 bn in 1Q 2024, marking a “high level of activity” on the market during the quarter, according to the Saudi Exchange’s Capital Market Review for 1Q (pdf). The total number of traded stocks grew 32% q-o-q to c. 35 mn stocks.

Tadawul’s aggregate market capitalization was down 2.9% q-o-q to SAR 10.9 trn even as total value of shares traded was up. The Tadawul All Share Index (TASI) gained 3.6% q-o-q and closed at 12.4k at the end of the first quarter. Three companies listed on the main market during Q1, bringing the total number of listed companies on Tadawul to 234.

A look at how Nomu fared: The value of stocks traded on parallel market Nomu nearly doubled q-o-q to SAR 3.3 bn, according to the report. Its market capitalization was up 5.2% q-o-q to SAR 50.8 bn. NomuC gained 6.1% q-o-q closing at 26k points during the quarter. The parallel market saw the addition of six more companies, bringing the number of listed companies to 85.

With a key milestone: The total number of listings on Tadawul across all securities clocked in at 400 in March 2024 — which officials said was a “clear testament to the work the Saudi Exchange and Tadawul Group have undertaken to support and drive rapid growth and change within the Saudi capital market.”

The local exchange welcomed 13 new listings in 1Q 2024, including:

  • Three IPOs on the main market;
  • Six Nomu IPOs;
  • One corporate sukuk;
  • Two sovereign debt issuances,
  • One ETF listing

Neither Tadawul nor Nomu saw any delistings during the quarter. They collectively raised SAR 7.3 bn (c. USD 1 bn) in IPO proceeds in 1Q 2024 after raising SAR 13 bn in 2023 to account for 70% of GCC IPOs.

To name a few: Regional broadcaster MBC Group rang the bell on Tadawul in January following a blockbuster IPO. Avalon Pharma was quick to follow with a SAR 492 mn main market IPO in February, while Modern Mills following suit in March. Six companies offered shares in the parallel market, including Pan Gulf Marketing, WSM Information Tech, Al Modawat Specialized Medical, Quara Finance, Al Mohafaza Education and Taqat Mineral Trading.

And a new index: Tadawul launched TASI50 Index, which tracks the 50 largest companies by market cap listed on the exchange.

In terms of value, materials companies saw the highest level of trading activity, generating 15.1% of the total value traded on Tadawul in 1Q 2024, followed by banks (12.4%), energy companies (9.6%) and transportation companies (6.8%).

In terms of volume, consumer service firms topped the list, accounting for c. 19% of the main market’s total trades, followed by materials companies (10.5%), retail (8.2%), and energy (7.7%).

SUKUK & BONDS-

The size of the sukuk and bonds market grew 2.6% q-o-q to SAR 564 bn on the back of three new listings and two delistings. However, performance metrics saw a slight contraction as trades declined on a quarterly basis despite growing 54.7% y-o-y in comparison with the corresponding quarter a year earlier.

FOREIGN OWNERSHIP-

Foreign investors’ main market holdings on Tadawul were up 4.6% q-o-q to SAR 418.9 bn in 1Q 2024. This is up 20.7% y-o-y. Similarly, the value of foreign ownership in Nomu grew 46.3% q-o-q to SAR 864.4 mn. It is up 80.5% y-o-y.

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