The share of government agencies, “the largest owners in the Saudi stock market”, increased by 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 the data of the Saudi Stock Exchange “Tadawul”, the value of ownership for government agencies at the end of May is the highest historically, benefiting from the Saudi Aramco share recording historical levels, and the investment fund’s acquisition of a stake in Kingdom Holding Company, while the share of government agencies is the highest since March 2021 when It was 79.01%.
May witnessed the Public Investment Fund’s purchase of a 16.87 percent stake in Kingdom Holding Company at a value of 5.68 billion riyals, while Saudi Aramco’s share recorded its highest historical levels at 43.35 riyals “after the bonus shares”, raising its market value to 9.54 trillion riyals at the time before its later decline, According to the newspaper “Economic”.
With regard to foreign investment, foreign purchases during five months of this year jumped 214%, reaching 35.2 billion riyals, compared to 11.2 billion riyals in the same period in 2021.
Foreign purchases during the period exceeded their flows for the entire past year, amounting to 25.5 billion riyals, which reflects the positive view of foreigners on the market and its attractiveness to them, in light of the strong growth of the Saudi economy in 2021 and its recovery from Corona.
This is in addition to expectations of strong growth in 2022 and the transformation of the budget into surpluses, in addition to the huge government spending within Vision 2030 and the partner program that market companies benefit from.
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.
During 42 months, since December 2018, foreign investors continued to record net purchases in Saudi stocks, with the exception of only two months, March 2020, coinciding with the height of the Corona pandemic, and December 2020, while their purchases since the beginning of 2019 amounted to about 163.6 billion riyals, a growth of 305.6%.
The value of foreign investments in Saudi stocks 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 about 2.2 billion riyals, in conjunction with a 5.9% decline in the market index, during last May.