TASI Drops 2.32% to 9,695 Points, Recording Lowest Close Since March 2023

The main Saudi stock market index "TASI" closed at 9,695.86 points in Thursday's session, down 2.32% from the previous session, recording its lowest level since March 2023, according to data from TradingEconomics and Yahoo Finance.

Independent data from Yahoo Finance showed the same level at 9,695.86 points with a 2.325% decrease, confirming the extent of the drop during the session, supporting the initial data reading, and reducing the likelihood that the difference resulted from a pricing error. Both readings agree that the session was one of the notably negative sessions in the market.

Over the longer term, the index fell 8.52% over the past month and 16.50% over the past year, reflecting continuous pressure on Saudi market stocks. This indicates that the current drop is not an isolated event, but part of an extended trend reflecting investor concerns. This means a significant loss in the value of portfolios linked to the index over the past year.

The drop comes amidst investor anticipation of energy price developments and geopolitical risks in the region, as the movement of many Saudi stocks is tied to the oil sector and government spending. This makes the market more sensitive to external variables, budget decisions, and capital expenditure. The market is also monitoring any movement in government spending and major projects, as they are a key driver of profits for many listed companies.

What do these terms mean?

TASI: The main index of the Saudi Stock Exchange, measuring the performance of a group of the largest listed companies in the market.

Market Index: A figure that aggregates the prices of a group of listed stocks and shows the general market direction, whether rising or falling.

Closing: The price or level of the index at the end of a trading session, used as a reference to compare the performance of different sessions.