Saudi Exchange Capital Market Performance Report
Q1 2021
Despite wider volatility within global capital markets,
in Q1 2021 the Saudi Exchange, once again oversaw robust trading and strong international investor demand for shares in Saudi-listed companies.
Average daily traded value on the Tadawul All Shares Index (TASI) came to SAR 10.9 billion for the period as the index closed the quarter up over 14%.
Q1 was a particularly significant period for our debt markets where the value traded increased by 86.4% from the prior quarter. The total size of issuance grew to SAR 399.9 billion amid substantial investor appetite for Saudi-listed debt, while we also saw continued demand for derivatives trading in the second full quarter of activity since the launch of the MT30 Index Futures.
We continued to introduce enhancements designed to advance the efficiency and effectiveness of the Saudi capital market in the quarter. Together with Edaa, we improved the regulatory framework around Securities Borrowing and Lending (SBL) and short selling to broaden the alternative investment options available for investors to hedge against risk. The inaugural Saudi Capital Market Awards recognised those market participants that have actively contributed to the development and growth of Saudi Arabia’s capital market, while we also partnered with the Arab Federation of Exchanges to host the AFE Annual Conference Saudi 2021.
Looking forward, this is an incredibly exciting time for the Saudi Exchange and the wider Saudi capital market. On 7 April 2021 we announced our transformation into a holding company, Saudi Tadawul Group, which will oversee four subsidiaries as we prepare for our own IPO later this year. The transformation is a landmark moment in the development of the Saudi capital market that will allow for the strengthening of our market infrastructure through innovative solutions and investments in technology. It is a significant achievement that will increase the Saudi capital market’s attractiveness among global investors and reinforce our position as the issuers’ exchange of choice.
Q1 Market Trends
Key Highlights
10.9 billion SAR
The average daily traded value on the TASI increased by 159% on the year prior in Q1 as the index gained 14% in the period.
86.4% Q-on-Q growth in value of sukuk & bonds traded
The total size of issuance on the Saudi Exchange’s Sukuk & Bonds market increased to SAR 399.91 billion during a quarter of heightened activity.
10.1 million SAR – Value of futures contracts traded in Q1
In its second full quarter of trading since launch, the Derivatives Market of Saudi Exchange continued to see strong demand with 84 futures contracts traded.
190 billion SAR – value of Qualified Foreign Investors' (QFI) holdings
QFIs now hold 2% of shares issued on the Main Market as the Saudi Exchange steadily becomes more globalized and institutional.
Equities
The TASI grew strongly in Q1 with the total market capitalization of the Main Market increasing by 5.8% on the previous quarter.
| Main Market | |
|
9.63 trillion Market capitalization (SAR) |
697.26 billion (-4.92%) ↓ Traded value (SAR) |
|
204 Constituents |
9,907.82 (14.02%) ↑ Tadawul All Share Index (TASI) closing |
| Nomu – Parallel Market | |
|
12.48 billion Market capitalization (SAR) |
2.72 billion (-1.53%) ↓ Traded value (SAR) |
|
5 Constituents |
24,291.91 (-7.44%) ↓ Parallel Market Capped Index (NomuC) closing |
TASI Average Daily Traded Value & Velocity
TASI Price Performance & Volumes Traded
| Top gainers | ||
| Company | % change | |
| ATHEEB TELECOM | 252.17% | |
| ALJOUF | 123.16% | |
| SAIC | 117.72% | |
| SARCO | 86.12% | |
| FITAIHI GROUP | 76.04% | |
| Top losers | ||
| Company | % change Q-o-Q | |
| ACIG | -20.38% | |
| SPM | -12.07% | |
| ALMRAKEZ | -10.98% | |
| NCLE | -9.10% | |
| BINDAWOOD | -8.40% | |
| Best performing sectors | ||
| Sector | % change | |
| Software and Services | +42.5% | |
| Diversified Financials | +41.4% | |
| Banks | +22.1% | |
| Consumer Durables and Apparel | +19.0% | |
| Transportation | +16.9% | |
| Worst performing sectors | ||
| Sector | % change Q-o-Q | |
| Food and Beverage | -0.8% | |
| Media and Entertainment | +0.2% | |
| Commercial & Professional Svc | +0.8% | |
| Food & Staples Retailing | +1.9% | |
| Consumer Services | +2.3% | |
Share of Volume Traded by Industry Group
| Most active members on the Main Market Q1 2021 | |||||
| Value Rank | Member Name | Value | Value(%) | Volume | Volume(%) |
| 1 | Al Rajhi Capital | 282,188,215,433.01 | 20.24% | 8,953,457,433 | 20.37% |
| 2 | NCB Capital | 195,155,414,285.40 | 13.99% | 5,992,728,614 | 13.63% |
| 3 | Derayah Financial | 158,410,187,316.35 | 11.36% | 4,836,165,621 | 11.00% |
| 4 | AlJazira Capital | 125,852,806,731.91 | 9.02% | 4,164,149,826 | 9.47% |
| 5 | Samba Capital | 105,783,136,649.03 | 7.59% | 3,465,310,623 | 7.88% |
| 6 | Riyad Capital | 84,283,210,291.91 | 6.04% | 2,645,998,194 | 6.02% |
| 7 | Saudi Fransi Capital | 70,472,593,134.15 | 5.05% | 2,335,639,150 | 5.31% |
| 8 | HSBC Saudi Arabia | 53,419,068,845.48 | 3.83% | 1,848,034,572 | 4.20% |
| 9 | Alinma Investment Company | 48,329,562,604.83 | 3.47% | 1,367,031,817 | 3.11% |
| 10 | Falcom Investment Company | 41,515,747,964.30 | 2.98% | 1,165,609,731 | 2.65% |
Sukuk & bonds
The Saudi Exchange’s debt market continues to grow, over SAR 13.9 billion worth of sukuk and bonds were traded in Q1 – a 86.4% increase on the prior quarter.
| Sukuk / Bonds – Q1 2021 Overview | ||
|
399.91 billion Total Size of Issuance (SAR) |
1012.51 (-0.99%)↓ Sukuk / Bonds Market Index closing |
72 Listed |
| Q1 2021 | % change Quarter-on-Quarter | |
|---|---|---|
| Number of Trades | 544 | 6.25% |
| Value Traded (SAR) | 13,989,445,806.96 | 86.43% |
| Nominal Value Traded (SAR) | 13,030,851,000.00 | 66.54% |
| Total Size of Issuances (SAR) | 399,919,219,020.00 | 3.11% |
| Index Close | 1,012.51 | -0.99% |
| Most Active Members in Sukuk & Bonds Q1 2021 | |||||
| Value Rank | Member Name | Value | Value(%) | Volume(%) | |
| 1 | Al Rajhi Capital | 5,430,994,576.19 | 19.41% | 19.89% | |
| 2 | NCB Capital | 4,665,987,451.00 | 16.68% | 15.95% | |
| 3 | Samba Capital | 4,509,565,662.73 | 16.12% | 16.02% | |
| 4 | EFG_Hermes KSA | 4,156,803,598.69 | 14.86% | 15.71% | |
| 5 | Saudi Fransi Capital | 3,078,766,889.80 | 11.00% | 11.09% | |
| 6 | ANB Invest | 2,356,176,000.00 | 8.42% | 7.77% | |
| 7 | Riyad Capital | 1,537,841,704.20 | 5.50% | 5.56% | |
| 8 | AlJazira Capital | 868,751,728.90 | 3.11% | 2.95% | |
| 9 | Al Bilad Investment Company | 710,497,716.41 | 2.54% | 2.70% | |
| 10 | HSBC Saudi Arabia | 299,627,522.10 | 1.07% | 1.07% | |
Derivatives Market
The number of derivatives contracts traded in Q1 stood at 84. The daily settlement price of all futures contracts increased by the quarter’s end, reflecting positive investor expectations for the index’s future.
| Derivatives – Q1 2021 Overview | |
|
10.13 million Value traded |
84 Contracts traded |
MT30 Index Futures Contracts List
| Contract | Daily Settlement Price as at 31 March 2021 (SAR) | % Change (from First Day of Trading) |
| MT30 Index Futures April 21 | 1,348.00 | 10.86% (21 February 2021) |
| MT30 Index Futures May 21 | 1,345.00 | 5.91% (21 March 2021) |
| MT30 Index Futures June 21 | 1,342.00 | 20.36% (18 October 2020) |
| MT30 Index Futures September 21 | 1,334.00 | 14.41% (24 January 2021) |
Derivatives Monthly Trading Statistics – Q1 2021
| Month | Volume of Contracts Traded | Value Traded (SAR) | Transactions |
| January | 52 | 6,128,800.00 | 2 |
| February | 23 | 2,806,000.00 | 4 |
| March | 9 | 1,193,400.00 | 1 |
Ownership
Ownership of firms listed on the exchange is becoming increasingly institutional and international in nature - Saudi institutions increased the value of their holdings in the Main Market by 15.93% in Q1 2021 and now own 10.74% of all issued shares.
| Foreign Investor Ownership* - Q1 2021 Overview | |
|
241.52 billion (15.93%) ↑ Main Market Holding value (SAR) |
9.54 million (40.71%) ↑ Nomu - Parallel Market Holding value (SAR) |
*Includes SWAP Holders, Foreign Residents & Others, QFIs, Foreign DPMs and Foreign Strategic Investors