RIYADH: Saudi Arabia’s main index, TASI, recorded its first monthly decline in 2022 to end the month of May on a down note, as investors fretted over the turmoil of the global economy.
TASI ended the month surrendering 5.9 percent, down 812 points to reach 12,921 at the closing bell of Tuesday’s session.
This was coupled with weak performances by all 18 sectors with the exception of capital goods, food and beverages, and diversified financials.
Saudi Industrial Export Co. topped the gainers’ list with a 72.36 percent gain during the month, followed by Al Gassim Investment Holding Co. and Tadawul Group, which gained 15.89 percent and 14.54 percent, respectively.
TASI lost its record high as it crossed 13,000 points for the first time since 2006 in March, and maintained this level during April as it closed at 13,733.
The record high resulted from a steep increase in oil prices caused by the Russian war, which benefited the Saudi economy, however, the continuance of the war has created skepticism.
Regardless of poor May performance, companies listed on Saudi Arabia’s stock market witnessed 73 percent growth in their first quarter profit, with nearly all sectors recording profit.
The main index also saw a flurry of listings since the beginning of the year, led by Nahdi Medical, which was also the largest listing since Aramco, along with six other companies.
While the Russia-Ukraine war continues, market sentiment is sullied by uncertainty. The war has led to global conflict, causing inflation to rise, and oil prices to fluctuate on a daily basis, making investors extremely vulnerable.