TASI ends Q1 2021 with 14% rise, registers highest close since 2014

Tadawul trading screen

Saudi Arabia’s Tadawul All Share Index (TASI) ended the first quarter of 2021 with a rise of 14%, or 1,218 points, at 9,908 points, compared to 8,690 points at the end of 2020, data compiled by Argaam shows. 

Thus, the benchmark rose for the fourth straight quarter, hitting its highest since Q3 2014 when it closed at 10,855 points, achieving the largest gains in terms of points since Q4 2016.  

Major events impacting the market's performance in Q1 2021: 

- Brent crude prices increased during the first quarter to cross $69 per barrel, in conjunction with OPEC+ decision to reduce production and Saudi Arabia’s announcement of the additional voluntary reduction.

- The listed companies announced their annual financial results that lasted for three months, ending on March 31, 2021.

- The Crown Prince announced the launch of a program to strengthen partnership with the private sector, as the market index rose to coincide with the announcement by more than 270 points in the last sessions of Q1 2021.

- Tadawul approved amendments to the rules governing short selling and the securities borrowing and lending regulations, which became effective from March 25, 2021.

Monthly performance:

TASI rose in the first three months of 2021, recording the biggest monthly gain of 8% in March and 5.1% in February.

The majority of market sectors ended Q1 2021 on a positive note, except for food and staples retailing, declining 1%.

Software & Services registered the highest increase of 43%, followed by diversified financials and banks sectors rising 41% and 22%, respectively.

Materials and energy sectors recorded an increase of 16% and 4%, respectively.

Index performance:

TASI hit its highest level in Q1 2021 at 9,910 points on March 31 and recorded the highest close in the same session at 9,908 points.

Meanwhile, the index reached its lowest level at 8,646 points on Feb. 4 and the lowest close was on Feb. 3 at 8,543 points.

The benchmark's highest daily trading value was recorded on Feb. 24 at SAR 16.79 billion, while the lowest daily trading value came on Jan. 27 at SAR 5.17 billion.

Meanwhile, the Saudi market index recorded a rise in 36 sessions during Q1 2021 out of 64 trading sessions. It declined in 28 sessions.

Among the 28 sessions, the March 18 session was the lowest, down 116 points, or 1.2%,

Trading value

Trading value increased 155% to reach SAR 697 billion in Q1 2021, compared to SAR 273 billion in Q1 2020.

March was the largest in terms of trading value by about SAR 291 billion, as the following table shows:

The number of transactions executed during Q1 2021 registered an increase of 126% year-on-year (YoY) to reach 27.6 million.

The Feb. 24 session witnessed the execution of 660,000 transactions, the highest session in terms of transactions since 2006, excluding the sessions that witnessed new listings during the period.

March was the largest in terms of the number of negotiated deals, reaching 11.46 million transactions.

Stock performance

Shares of 156 companies closed higher in Q1 2021, while 26 stocks ended in the red.

Top Performers

Etihad Atheeb Telecommunication Co., which resumed trading in February after 2.5 years of suspension, was the best performer for Q1 2021, surging 220%, followed by Al-Jouf Agricultural Development Co. and Saudi Advanced Industries Co. (SAIC) jumping 331% and 118%, respectively.

Al Moammar Information Systems Co. (MIS) and Saudi Public Transport Co. (SAPTCO) recorded gains of 56% and 45% respectively.

*Opening price of share after lifting of the trading suspension on Feb. 14, 2021

Top Losers

Allied Cooperative Insurance Group (ACIG) was the worst performer for Q1 2021, retreating 20%, followed by Saudi Paper Manufacturing Co. (SPM) declining11%.

Blue chips showed positive performance in Q1 2021, except for Savola Group, Almarai, and Jabal Omar recording declines.

A total of two stocks closed Q1 2021 below their par value (SAR 10). Dar Al Arkan closed at SAR 9.20 while Kingdom Holding ended at SAR 8.02.

REITs performance 

The majority of real estate investment trusts (REITs) realized an increase by the end of Q1 2021, except for Al Maather REIT and Alkhabeer REIT, which declined 3% and 1%, respectively. On the other hand, Al Mashaar REIT closed unchanged. 

Units of Taleem REIT recorded the highest increase of 13%, followed by Jadwa REIT Saudi at 11%. 

ETF performance 

Q1 2021 witnessed the listing of Alkhabeer Diversified Income Traded Fund, the first closed-ended investment traded fund. It closed down 9% at the end of the quarter. 

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