Government-owned 9.66 trillion riyals in Saudi shares .. accounting for 78% of the market

The share of government agencies, “the largest owners of the Saudi stock exchange”, increased at the end of last May to reach 78.03%, “9.66 trillion riyals” of the market, compared to 76.34%, “9 , 52 trillion riyals “at the end of the previous April.

According to data from the Saudi stock exchange “Tadawul”, the property value for government agencies at the end of May is the highest historically, benefiting from the Saudi Aramco stock which has recorded historical levels, and the acquisition by the investment fund of a participation in Kingdom Holding, while the share of government agencies is the highest since March 2021 when it was 79.01%.

May saw the Public Investment Fund purchase a 16.87% stake in Kingdom Holding Company worth 5.68 billion riyals, while Saudi Aramco’s stake recorded its all-time high at 43.35 riyals “after shares bonus”, increasing its market value to 9.54 trillion riyals at the time before its subsequent decline, according to the” Economic “newspaper.

As for foreign investment, foreign purchases during the five months of questyear increased by 214%, reaching 35.2 billion riyals, compared to 11.2 billion riyals in the same period in 2021.

Foreign purchases in the period exceeded the flows of the entire previous year, amounting to 25.5 billion riyals, which reflects the positive view of foreigners on the market and its attractiveness for them, in light of the strong growth of the Saudi economy. in 2021 and its recovery from Corona.

This adds to expectations of strong growth in 2022 and the transformation of the budget in leftovers, in addition to the huge public spending within Vision 2030 and the partner program benefiting companies in the market.

In light of the Russian-Ukrainian war, the flow of foreign investors to the Saudi stock market is likely to increase as one of the most important alternative markets among emerging markets.

For 42 months, since December 2018, foreign investors have continued to record net purchases in saudi equities, with the exception of just two months, march 2020, in coinciding with the height of the Corona pandemic, and December 2020, while their purchases since the beginning of 2019 have been around 163.6 billion riyals, with a growth of 305.6%.

The value of foreign investments in Saudi shares at the end of last May amounted to 387.1 billion riyals, or 3.13% of the market value of about 12.34 trillion riyals at the end of the same period.

Foreigners recorded a net purchase of around 2.2 billion riyals, in coinciding with a 5.9% drop in the market index last May.

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