Net inflows of foreign investors into the Saudi Tadawul stock market recorded a decline during the first 9 months of 2023. Amid a decline in the total value of purchases.
Net purchases by foreign investors in Tadawul’s main market decreased by 63.37% during the first 9 months of 2023, with a decrease of 20.9 billion riyals ($5.57 billion) compared to net flows in the same period of 2022. According to statistics prepared by Mubasher and based on the monthly reports issued by the Saudi Tadawul Company.
Foreigners recorded net purchases in the Saudi stock market worth 12.08 billion riyals ($3.22 billion) in the first nine months of 2023, compared to 32.99 billion riyals ($8.8 billion) in the same period last year.
The month of September 2023 recorded net buying by foreign investors in the main Saudi stock market for the twelfth month in a row.
The value of flows during last September amounted to 366.69 million riyals ($97.78 million), compared to a net sale of 1.61 billion riyals ($428.27 million) in the same month of 2022.
The month of July was the highest in net inflows by foreigners into the Saudi stock market since the beginning of this year. By 3.95 billion riyals ($1.05 billion), followed by April with a net of 3.6 billion riyals ($961.6 million).
Purchases decreased 18%
Total purchases by foreigners in the Saudi stock market declined during the first 9 months of 2023 by 17.98% on an annual basis. A decrease in value of 44.09 billion riyals ($17.76 billion) compared to their total purchases in the same period last year.
Purchases of foreigners in the main market of Tadawul amounted to 201.13 billion riyals ($53.64 billion) in the first nine months of this year, compared to 245.22 billion riyals ($65.39 billion) in the same period in 2022.
Likewise, total foreign sales decreased by 10.9% in the first 9 months of 2023 on an annual basis, to 189.05 billion riyals ($50.41 billion), compared to 212.23 billion riyals ($56.59 billion) in the same period last year.
Foreign ownership of the stock market rises by $5.1 billion in 9 months
The value of foreign ownership of shares listed on the Tadawul main market increased by 3.6% at the end of September 2023 on an annual basis, with an increase of 12.77 billion riyals ($3.4 billion) over its value at the end of the same period last year.
The value of shares owned by foreign investors reached 365.91 billion riyals ($97.58 billion) at the end of September 2023, compared to 353.14 billion riyals ($94.17 billion) at the end of the same month last year.
Since the beginning of this year, the value of foreign ownership of Saudi stocks has increased by 5.58%, amounting to 19.35 billion riyals ($5.16 billion) in the first 9 months of 2023, compared to its value at the end of 2022, which amounted to 346.57 billion riyals ($92.42 billion).
It is noteworthy that the ownership of foreign investors in the Saudi stock market reached its peak during the month of April 2022 AD. When it ended, it jumped to 421.87 billion riyals ($112.49 billion).
