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Saudi Stock Market Among Top Regional Performers in December Amid Positive Investor Sentiment

Prime Highlights: 

Saudi Arabia’s stock market (TASI) rose by 3.39% in December 2024, closing at 12,037 points with an average daily trading value of SR5.2 billion ($1.3 billion). 

Dubai Financial Market led the regional performance, with the DFMGI index increasing by 6.42%. 

Key Background: 

The Saudi stock market stood out as one of the top performers in the Arab region during December, with the Tadawul All Share Index (TASI) rising by 3.39%. This performance was supported by improved liquidity and increased investor confidence, according to a report from the Arab Monetary Fund (AMF). 

At the close of December 2024, TASI reached 12,037 points, accompanied by an average daily trading value of SR5.2 billion ($1.3 billion). This brought the total monthly trading volume to SR119.6 billion, reflecting a solid year-end performance. While TASI excelled, the Dubai Financial Market (DFM) led the regional surge, with the DFMGI index rising by 6.42%, making it the best-performing exchange in the region for the month. Other notable stock exchanges, including Palestine and Iraq, also posted strong gains of 4.85% and 4.14%, respectively. 

This upward trend across Arab markets resulted in a 1.03% increase in the AMF’s composite index for December, driven by factors such as improved investor sentiment, easing inflationary pressures, and favorable monetary policy adjustments. Most Arab markets mirrored the positive performance of emerging markets, with the MSCI Arab Index rising by 3.46%. 

In contrast, global market performance was mixed. While the Nikkei 225 saw a 4.41% increase, markets such as the FTSE 100 and Dow Jones experienced declines. Despite some regional markets, such as the Damascus and Bahrain bourses, showing negative performance, key exchanges like Abu Dhabi, Kuwait, and Qatar saw growth. 

In terms of market capitalization, Arab exchanges experienced a 2.96% increase, with a total market value reaching approximately $4.4 trillion. Tadawul significantly contributed to this growth, adding 1.47 percentage points. Several other exchanges, including Beirut and Dubai, also posted substantial gains in market capitalization. The positive momentum was bolstered by broader monetary policy easing, including interest rate cuts by central banks across the region. Overall, Saudi Arabia’s stock market was a key driver in the region’s robust performance in December.