Foreign investors continue to buy in the Saudi stock market

Foreign investors continue to buy in the Saudi stock market

Foreign investors continued to buy into the Saudi stock market, demonstrating the vitality of the country’s financial market on the one hand and its investment attractiveness on the other.

The Saudi Stock Exchange (Tadawul) announced that net foreign buyers’ purchases through foreign direct investment (qualified investors) last week reached SR 1.1 billion ($ 293.3 million), while net purchases by Saudi companies amounted to SR 352.59 million ($ 94 million).

The increase in foreign direct investment flows to the Saudi stock market follows important steps to include the financial market in several leading global indices, the most important of which are the MSCI World Index and the FTSE Russell Index.

The Saudi stock market is maintaining its stable performance as the market is trading more stable, with many companies moving positively, especially those companies that are expected to achieve positive growth in the financial results for the second quarter of this year.

The Saudi companies listed in the local market entered the second quarter of this year, with 6 companies listed so far. The results showed that 3 companies achieved positive growth in profits during the first half of this year .

According to figures released, Saudi companies succeeded in achieving a net profit of 22.8 billion riyals ($ 6.08 billion) in the first quarter of this year. Saudi companies are expected to succeed in the second quarter of this year, Investment attractiveness.

In a related context, the index ended the Saudi stock market on Sunday to a limited decline of 0.4 per cent, to close at levels of 8811 points, amid trading amounted to about 1.8 billion riyals (480 million dollars).

On the local market, cement stocks topped Saudi Arabia’s stock market yesterday, with Arab Cement and South Cement gaining more than 3 per cent.

These developments come at a time when the Saudi stock market is one of the most active in the world, which has recently witnessed a series of positive steps to stimulate investment. The local market has been listed in several leading international indices. At the same time, The financial sector, which has the opportunity to develop, in light of the Kingdom’s launch of the Financial Sector Development Program, is one of the programs of Vision 2030.

The financial houses of expertise monitor the investment opportunities available in the Saudi stock market while closely monitoring the financial results announced by the companies listed in the local market. Many investment decisions are based on these results. At the same time, these results contribute to redefining the positions Investment.

According to the results of the first quarter of this year, 86 listed Saudi companies succeeded in achieving positive changes in their financial results compared to the same period of 2018.

Foreign investors have become more likely to own Saudi companies listed on the capital market. The country’s CMA recently confirmed that strategic investors could have strategic stakes in listed companies, according to a package of commitments. The CMA excluded foreign strategic investors from the requirement that it does not own more than 49 per cent of listed companies in the domestic market, demonstrating the vitality of the country’s financial market.

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