Saudi's Tadawul ranked world's 25th biggest stock market

Saudi Stock Exchange's annual report says market capitalisation reaches $451bn
Saudi's Tadawul ranked world's 25th biggest stock market
By Sam Bridge
Tue 31 Jul 2018 02:15 PM

The Saudi Stock Exchange, also known as Tadawul, is ranked the 25th biggest bourse in the world with a market capitalisation of $451 billion, according to its 2017 annual report.

The report reveals Tadawul's significant growth in net income reaching SR129.8 million at the end of 2017 - an increase of 543 percent compared to the previous year - and a 74 percent year-on-year increase in revenue, standing at SR545.4 million.

The report elaborates on Tadawul’s strategy and its role in realizing the Saudi Vision 2030 - most notably, the launch of Nomu, the parallel market.

Last week, Jadwa Investment said in a research note that The upgrade of the Saudi Stock Exchange by MSCI to Emerging Markets status as well as improved investor sentiment related to higher oil prices led to a 7 percent rise in value for the bourse in the second quarter of 2018.

It said that the Tadawul All Share Index's (TASI) year-to-date gains currently stand at around 17 percent, making it the best performing equity market when compared to major international and regional indices.

Looking ahead, Jadwa said it expects the combination of both FTSE Emerging Market (EM) and MSCI EM inclusion to bring in a minimum of $15 billion in passive inflows by the end of 2019.

It added that it also expects active investors benchmarked to MSCI EM to start entering the market prior to actual inclusion, which is expected to drive TASI performance even higher.
  
Jadwa said it views a rise of at least 20 percent between now and early 2019 as "totally plausible", pushing TASI to around 10,000 points, compared to circa 8,400 points currently.

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