TASI ends 2018 with 8% gain; posts biggest rally since 2013

Saudi Arabia’s Tadawul All Share Index (TASI) chalked up the biggest gain since 2013, ending 2018 with a rise of 8 percent, or 601 points, at 7,827 points, compared to 7,226 points in 2017, data compiled by Argaam show.

In 2013, the benchmark index jumped 26 percent, or 1,735 points.

TASI added 9 percent (645 points) in Q1 2018, and 6 percent (443 points) in Q2 buoyed by Saudi Arabia's inclusion in FTSE Russel Secondary Emerging Market Status and MSCI Emerging Markets Index.

The index, however, bucked its uptrend in the second half of the year, dropping 4 percent, or 314 points in Q3 2018. It also shed 2 percent, or 173 points in the fourth quarter amid a steep decline in oil prices, as Brent crude sank below $51 per barrel.

During the year, the Saudi market witnessed a number of regulatory measures and enhancements. It allowed investors to buy orders below the lower limit and sell above the upper fluctuation limit.

Tadawul adopted the auction method for determining opening and closing prices in the Main Market and Nomu-Parallel Market.

The Independent Custody Model (ICM) was updated to enhance Qualified Foreign Investor (QFIs) access to the market.

The Saudi exchange signed an agreement with index provider MSCI Inc. to develop a joint tradeable index that can serve as the basis for investment instruments including derivatives and ETFs. 

Tadawul will introduce exchange-traded derivatives in the first half of 2019. It will also launch an index futures contract based on the tradeable index jointly developed with MSCI.

The Capital Market Authority (CMA) has directed Tadawul to post a quarterly report on listed companies’ ownership in subsidiaries and affiliates.

TASI rallied for six months in 2018, recording the highest monthly level of 6 percent in January and March. The biggest fall came in at 4 percent in August.

Thirteen market sectors ended the year on a dull note, dragged by Real Estate Management with a 31 percent plunge. Utilities came second with 26 percent, followed by Insurance (12 percent).

Meanwhile, six sectors gained, led by Media with a 32 percent surge. Banks and Telecommunication followed, soaring 31 percent and 27 percent, respectively.

Total turnover grew by 4 percent year-on-year (YoY) to SAR 871 billion in 2018.

The benchmark's highest monthly trading value was recorded in April at SAR 108 billion. The lowest monthly trading value came in June at SAR 46.4 billion, due to scant trading during the holy month of Ramadan and Eid Al-Fitr holidays.

TASI hit its highest level at 8,503 points on July 23, and its lowest annual level on Oct. 14 at 7,002 points.

The gauge recorded its highest daily gain of 323 points on Oct. 25, and the biggest daily drop of 304 points on Oct. 11.

The benchmark's highest daily trading value was on Oct. 25 at SAR 9.65 billion, while the lowest daily trading value was on Dec. 30 at SAR 1.45 billion.

For stock performance, 118 companies closed the year lower, while 54 stocks ended in the green.

Saudi Indian Company for Cooperative Insurance (Wafa Insurance) was the best performer for the year, tumbling 63 percent, followed by Etihad Atheeb Telecommunications Co. (GO) which sank 45 percent.

Jabal Omar Development dived 42 percent, followed by Dar Al-Arkan Real Estate (37 percent) and Savola (32 percent).

On the other hand, Saudi Industrial Export Co. (SIECO) was the top riser in 2018, surging 193 percent. Home appliance retailer eXtra rallied 61 percent. It was followed by Riyad Bank with 59 percent. Saudi Telecom Co. (STC), Al Rajhi Bank, Jarir Marketing Co., Saudi Research and Marketing Group saw gains between 34 percent and 40 percent.

 * Amending capital during the period.

*Capital cut during the period.

** Wafa, Atheeb Telecom: Closing of last day before suspension.

Among blue chips, Al Rajhi Bank and Saudi Basic Industries Corporation (SABIC) climbed 35 percent and 14 percent, respectively last year. National Commercial Bank (NCB) jumped 30 percent. Riyad Bank was the top performer, soaring 59 percent.

Meanwhile, Jabal Omar Development dropped the most by 42 percent, followed by Savola Group (32 percent) and Saudi Electricity Co. (SEC), which dipped 28 percent.

 * Amending Capital during the period.

A total of 23 stocks closed the year below their par value - SAR 10 - dragged by GO at SAR 5.35, Amiantit at SAR 5.84, and Abdullah A. M. Al-Khodari Sons at SAR 6.80.

* Amending capital cut during the period.

** Wafa, Atheeb Telecom: Closing of last day before suspension

All REITs ended 2018 in the red. Jadwa Al-Haramain REIT sank 27 percent. Riyad REIT came second, falling 19 percent. Aljazira REIT and Al-Ma'athar REIT dropped 18 percent, each.

Nine REITS were listed in 2018 and ended the year below their listing prices.

New market entrants, National Company for Learning and Education (NCLE) and Leejam Sports jumped 19 percent and 13 percent, respectively in 2018.