The highest weekly purchases of foreign investors in Saudi stocks since...

The highest weekly purchases of foreign investors in Saudi stocks since...
The highest weekly purchases of foreign investors in Saudi stocks since...

Foreign investors recorded the largest net weekly purchases in Saudi stocks since 2019 by about 3.23 billion riyals, after total purchases of 9.53 billion riyals, compared to sales of about 6.3 billion riyals during the last week ending on December 16 this year.
According to the analysis of the reports unit in the newspaper “Al-Eqtisadiah”, which was based on the data of the Saudi Stock Exchange Company “Tadawul”, the market value of the share of foreign investors in the Saudi stock market jumped by the end of last week to 301.4 billion riyals, which constitutes 3.05 percent of the market value of 9.89 trillion. Real on the same date.
The rise in the market value of foreign ownership coincided with the rise of the main Saudi stock market index “TASI” by 3.4 percent (373 points) during the past week, closing at 11,312 points, compared to 10,939 points at the end of the previous week.
Last week, FTSE Russell implemented its changes in the markets on Thursday, December 16th.
The purchase of foreigners was supported by the Saudi government’s announcement of the 2022 budget with huge government spending of 955 billion riyals, in addition to 150 billion riyals from the Public Investment Fund, as well as the expectation of the first surplus after eight years of deficits, in addition to the expectation of the highest economic growth in 11 years by about 7.4 percent, which Opening the appetite of foreigners to invest in the market, which is expected to benefit from these indicators.
The highest weekly purchases by foreigners were recorded in 2019 in conjunction with the implementation of the market joining the emerging market indices, especially the Morgan Stanley MSCI indices, with 7.2 billion riyals in May, 6.9 billion riyals in August, and 6.8 billion riyals In June 2019.
Since the beginning of 2021, foreign investors have recorded net purchases of 23.9 billion riyals, after a total purchase of 181.8 billion riyals, compared to total sales of 157.9 billion riyals.annual development
And Saudi stocks attracted foreign inflows of “net purchases” during the past year 2020, with a value of 18.7 billion riyals “five billion dollars”, recording the second highest level since foreigners were allowed to invest directly in the market in 2015, despite the outbreak of the Corona pandemic.
The most attractive year for foreign investments was 2019, with about 91.2 billion riyals, bringing the total for the two years together to about 110 billion riyals.
Emerging Markets
In June 2015, the Saudi Capital Market Authority allowed qualified investors from international institutions to buy local shares directly, while previously their investments were limited to “swap agreements” only.
The foreign investor’s share in Saudi stocks includes strategic foreign partners in companies, swap agreements, resident investors, qualified foreign institutions, and finally managed portfolios.
On August 29, 2019, the inclusion of Saudi stocks in the Morgan Stanley Emerging Markets Index was completed by implementing the second phase, adding 50 percent of the market’s weight, bringing the Saudi market’s weight to 2.8 percent of the global index.
Also, 100 percent of the market was included in the Standard & Poor’s Index, and 75 percent in the FTSE Russell Index.
Also, during December of 2019, Saudi was included in the Morgan Stanley and FTSE Russell emerging markets indices, adding new foreign flows to the market.
The first phase of accessions to the global indices “FTSE Russell” and “S&P Dow Jones” for emerging markets was carried out, March 18, 2019, according to closing prices of March 14, 2019.
Based on what was announced by FTSE Russell as part of the plan to join the Saudi stock market in emerging market indices, the first phase of the five phases has been implemented, and the first phase represents 10% of the total weight of the Saudi stock market.
On the same date, the first phase of the Saudi stock market’s accession to the S&P Dow Jones index was implemented, which took place in two phases, with the first phase implementing 50 percent of the total weight of the Saudi stock market.
The second and third phases of joining the FTSE indices were implemented on May 1 and June 24, 2019 with a weight of 15 and 25 percent, respectively.
The first phase of the Saudi stock market joining the Morgan Stanley Emerging Markets Indexes was implemented on May 29, 2019 with a weight of 50 percent of the market.
On March 28, 2018, FTSE Russell decided to include the Saudi market in the rank of secondary emerging markets, in stages starting in March 2019 and ending in March 2020, due to the large size of the market, but it ended it on June 22 ( June) to reduce the risk to investors.
On July 25, 2018, Standard & Poor’s Dow Jones decided to upgrade the Saudi market to an emerging market starting in March 2019.
The institution added at the time, “The promotion will take place in two phases, the first in conjunction with the quarterly rebalancing on March 18, 2019 at 50 percent, and the second with the annual review on September 23, 2019 at 100 percent,” which was done Really.

Economic Reporting Unit

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