The kingdom’s Tadawul All Share Index has retreated 4.2 percent since the end of June as value of shares traded for July decreased 25 percent over the previous month, according to reports.
However, compared with the significant drop in Brent Crude oil of 21 percent in that period, the market has “shown its mettle” in what Bloomberg called a “resilience” that “shows how the world’s biggest crude producer is riding out the slump thanks to the confidence of locals who account for almost all the $525 billion market’s investors and the government’s determination to press ahead with infrastructure spending.”
Saudi Arabia’s CMA regulates trading on the Tadawul All Share Index.
“That may give comfort to foreigners considering buying Saudi stocks after the nation opened the market to overseas investors for the first time on June 15,” according to Bloomberg.
Saudi Arabia stocks were higher after the close on Monday, while Brent Crude settled above $50/bbl. On a year to date basis, Saudi stocks are up 9.18%.
