Tadawul Quarterly Capital Markets Performance Report

Q4 2020
Mohammed Sulaiman Al Rumaih

Despite pervasive uncertainty within the global capital markets, in Q4 Tadawul once again oversaw robust trading and strong international investor demand for shares in Saudi-listed companies. Average daily traded value on the Tadawul All Shares Index came to a record SAR 11.1 million for the period, while value traded also reached an all-time quarterly high of 733.4 billion.

Q4 was also the first full quarter since the landmark launch of the Tadawul Derivatives Market. Demand for index futures contracts was strong, marking a successful opening period for derivatives trading on Tadawul.

Tadawul continued to introduce enhancements designed to advance the efficiency and effectiveness of the Saudi capital market in the quarter. The launch of the Repo Collateral Transfer service and the updates to the Negotiated Deals and the Fluctuation Limits mechanism have strengthened the exchange’s market infrastructure, while the Saudi Capital Market Awards will both promote and recognise the leadership displayed by listed companies.

2020 has been a challenging time for markets the world over. However, Tadawul and its partners have shown resilience and adaptability – continuing to provide a bespoke service while also delivering key market improvements throughout the year that are further developing the Saudi market and cementing its status as one of the premier destinations for global capital.

Q4 Market Trends


Key Highlights

11.1 million SAR

The average daily traded value on Tadawul in Q4 2020, a 217% increase on the year prior.


202% Y-o-Y growth in average daily volume traded

Q4 was a very active quarter with record average daily trading volumes. The Tadawul All Share Index closed the period up 4.7%.


159 billion SAR - value of QFI’s holdings

QFIs now hold 1.8% of shares issued on the Main Market as Tadawul steadily becomes a more globalized exchange.

17.7 million SAR - Value of futures contracts traded in Q4

In its first full quarter of trading since launch, Tadawul’s derivatives market saw strong investor demand as 156 futures contracts were traded.

Equities


The Tadawul All Share Index grew strongly in Q4, closing the period up 4.7% amid record quarterly trading by both value and volume.

Main Market – Q4 Overview
9.10 trillion
Market capitalization (SAR)
733.34 billion (38.56%) ↑
Traded value (SAR)
203
Constituents
8,689.53 (4.70%) ↑
Tadawul All Share Index (TASI) closing
Nomu – Parallel Market – Q4 Overview
12.18 billion
Market capitalization (SAR)
2.76 billion (72.76%) ↑
Traded value (SAR)
4
Constituents
26,245.46 (85.96%) ↑
Parallel Market Capped Index (NomuC) closing

TASI average daily traded value & velocity


TASI Price Performance and Volumes


Top gainers
Company % change Q-o-Q
SPM 131.29%
AAAM Holdings 100.52%
ABO MOATI 74.84%
NASEEJ 72.84%
WAFRAH 72.07%
Top losers
Company % change Q-o-Q
JABAL OMAR -20.27%
MEFIC REIT -18.71%
WATANIYA -18.29%
SWICORP WABEL REIT -17.11%
JADWA REIT ALHARAMAIN -17.00%
Best performing sectors
Sector % change Q-o-Q
Consumer Durables and Apparel +20.0%
Software and Services +18.0%
Capital Goods +15.0%
Materials +12.0%
Diversified Financials +11.0%
Underperforming sectors
Sector % change Q-o-Q
Food and Staples Retailing -20%
Real Estate Mgmt and Dev’t -18%
Food & Beverages -12%
Energy -10%
Commercial & Professional SVC -9%

Share of volume traded by industry group in Q4


Most active members on the main market Q4 2020
Value Rank Member Name Value Value(%) Volume Volume(%)
1 Al Rajhi Capital 100,375,708,101.30 19.81% 3,306,661,641 19.73%
2 NCB Capital 70,680,042,434.03 13.95% 2,288,372,889 13.65%
3 Derayah Financial 57,268,468,431.12 11.30% 1,800,917,857 10.75%
4 AlJazira Capital 45,915,744,026.73 9.06% 1,594,948,425 9.52%
5 Samba Capital 40,170,185,142.11 7.93% 1,317,055,557 7.86%
6 Riyad Capital 31,208,763,209.58 6.16% 1,027,726,136 6.13%
7 Saudi Fransi Capital 26,361,145,064.38 5.20% 915,626,952 5.46%
8 HSBC Saudi Arabia 19,883,816,307.58 3.92% 739,668,171 4.41%
9 Falcom Investment Company 17,345,717,877.39 3.42% 477,351,187 2.85%
10 Alinma Investment Company 15,749,717,718.92 3.11% 481,647,523 2.87%

Sukuk & bonds


Tadawulʼs debt market continues to grow, over SAR 7.8 billion worth of sukuk and bonds were traded in Q4 as the total number of trades increased by 13% on the prior quarter.

Sukuk / Bonds – Q4 Overview
387.84 billion
Total size of issuance (SAR)
1022.68 (0.09%) ↓
Sukuk / Bonds Market Index closing
72
Listed
  Q4 2020 % change Quarter-on-Quarter % change Year-on-Year
Number of Trades 512 13.02% 814.29%
Value Traded (SAR) 7,824,685,961.29 -39.21% 383.86%
Nominal Value Traded (SAR) 7,503,813,000.00 -37.91% 414.16%
Total Size of Issuances (SAR) 387,840,399,020 -1.42% 12.06%
Index Close 1,022.68 -0.09% 1.53%
Most active members in sukuk & bonds Q4 2020
Value Rank Member Name Value Value(%) Volume Volume(%)
1 Samba Capital 4,620,924,497.57 29.53% 4,414,337,000 29.41%
2 NCB Capital 3,042,733,116.48 19.44% 2,898,717,000 19.31%
3 Riyad Capital 2,552,429,562.16 16.31% 2,441,131,000 16.27%
4 Al Rajhi Capital 1,840,802,888.00 11.76% 1,758,700,000 11.72%
5 EFG_Hermes KSA 1,525,155,000.00 9.75% 1,500,000,000 9.99%
6 Al Bilad Investment Company 556,065,000.00 3.55% 548,960,000 3.66%
7 AlIstithmar Capital 472,749,500.00 3.02% 449,000,000 2.99%
8 Alinma Investment Company 376,693,724.33 2.41% 361,889,000 2.41%
9 Saudi Fransi Capital 287,035,200.00 1.83% 279,000,000 1.86%
10 HSBC Saudi Arabia 250,261,975.05 1.60% 239,827,000 1.60%

Derivatives


The number of SF Futures 30 contracts traded in Q4 stood at 156. Month end futures increased in price by 6.4% over the period, reflecting positive investor expectations for the index’s future.

Derivatives – Q4 Overview
17.67 million
Value traded
156
Contracts traded

MT30 Index Futures - Month-end


Ownership


Ownership of firms listed on the exchange is becoming increasingly institutional and international in nature - Saudi institutions increased their total holding of the market from 8.4% in Q3 to 9.3% in Q4.

Foreign investor ownership* – Q4 Overview
Main Market
208.34 billion (5.98%) ↑
Holding value (SAR)
Nomu – Parallel Market
6.78 million (7.04%) ↑
Holding value (SAR)

*Includes SWAP Holders, Foreign Residents & Others, QFIs, Foreign DPMs and Foreign Strategic Investors

Ownership by Investor Type Q4 2020


Ownership by Investor Type Q4 2019


QFI Ownership YTD (Billion SAR)


QFI Trading Value YTD (Billion SAR)