Did Saudi shares lose their brilliance?

In one of the tranquil sessions over the past year, the Saudi stock market has closed its weekly trading at the lowest level of daily liquidity since December 2022, in a new indication of the ongoing decline in the momentum of trade. The low number does not reflect the mere temporary slowdown, but rather comes within a series of disturbing signals about the scarcity of liquidity since the beginning of the year. This decline has begun to raise broader questions, not only for investors, but also among companies that have been seen in the market an important channel for expansion and financing. According to the “East Economy” accounts, the daily average of trading values ​​has reached about 54% since the beginning of September compared to the same period last year, reflecting a sharp decline in the activity, which is equivalent to a decrease in customer trust. Since the beginning of the year 2025, the Saudi market has gradually lost a large part of its investment’s attractiveness, with the index falling around 13% so far to become the second most international markets this year. This poor performance coincided with disappointing results from most of the listed businesses, as well as a lack of interest in both individual and institutional investors. Market data indicates that the market value of the transactions of Saudi individual investors fell by about 10%, and the value of the market trading of local institutions also dropped by 14%, while trading in Golf and foreigners was more coherent. Change in the average daily trading volume in the Saudi Market (one billion Riyals) period 2025 2024 The rate of change (on an annual basis) average of the first 7 sessions from 3 September 6.8 -54 August 4.3 7.6 -43 July 4.7 6.33 -26 June 5.3 10.6 -50 Alternative investment channels for the financial market. It stands for real competition from alternative investment instruments that offer good returns at fewer risks. He explained that “the debt markets and monetary markets became more attractive to investors, which led to a gradual shift in the liquidity of the stock market to these channels.” Among the investment channels that the carpet drew under the feet of the shares during the last period, especially in light of the fog that controls the interest rate, as the US president has taken over the reins of the government, the gold that has increased by about 40%since the beginning of the year. The release cabinets that follow the yellow metal still attract liquidity from each direction, as the highest daily flow on Monday is on these boxes for almost 3 months. Al -Nuwaibt also indicated that the performance of companies came without expectations during the first half of the year, due to the pressure formed by the high interest rates on the margins of profitability. The scene was complicated by the absence of cash incentives, such as the reduction of the interest expected in August in August, but this did not happen, which made the market in a state of stagnation and confusion, as well as low oil prices after the production was increased by “OPEC+”. Also read: What are the expectations of oil prices expertise after the production “OPEC+” has been raised again? This downtime was also evident in the behavior of individual investors and institutions, as the first financial analyst in the newspaper Al -iqtisadiya, Ahmed Al -Rashid, emphasized that the falling trading values ​​reflect the decline in the demand for equities in exchange for fixed income instruments. Al -Rashid said in an interview with the Al -Sharq channel that “the percentage of time and succulents rose to about 40% of the cash supply, which is the highest levels since 2009, at the end of July 2025 according to the data of the Saudi Central Bank, which means that a large segment of liquidity has decided to move from the market.” Between the withdrawals of subscription and the decline in trade, it became clear that investor confidence was going through a difficult test. The shares that were previously the first destination for any investor who is looking for growth today are under pressure from all directions, results without expectations, the absence of incentives, interest pressures and fluctuations in oil prices after the production was increased by “OPEC+”. Investor share developed according to the nationality and the type of investor from the value of the export shares at the end of the Saudi Individuals Saudi Institutions Foreign Gulf September 4, 2025 %9.69 %84.97 %0.78 %4.55 The end of the second quarter 2025 %9.84 %84.88 %0.77 %4.51 at the end of the first quarter 2025 %9.59 %85.3. %0.75 %4.434 At the end of the fourth quarter 2024 9.28 %85.84 %0.74 %4.15 at the end of the third quarter 2024 %9.37 %85.76 %0.77 %4.11 at the end of the second quarter 2024 %8.97 %86.32 %0.71 %4.00 Market Pases in a normal cycle A normal cycle and is a normal cycle and is a normal cycle, and it is a number of indicator. part of the “natural market course”. In this context, Ibrahim Al -Hindi, the economic researcher at the Arab market research center, indicated that the Saudi market had previously faced similar conditions and could overcome it. He explained that the low liquidity is due to the existence of other investment opportunities within the Saudi economy, which is the least risk of investing in the stock market. Al -Hindi added that the market in its current situation has opportunities in the medium and long term, especially in light of the registration of most global markets to record levels, compared to the declines in the Saudi market. He indicated that a major segment of liquidity in the global markets, especially the American, could turn to the Saudi stock market. Of the reasons why the market describing the market is an opportunity, a number of recently listed companies have bought their shares, as nine companies in the main market have announced from the purchases of their shares since the beginning of May, namely (Bank Albilad, Buba Arabia Insurance, Jadiz, Al -Rajhi Takaul, Jamjam Pharma, Dalla Health, Sirah, Sirah, Sirah, Jam determined). Some companies in the parallel market (growth) have also taken similar steps.