By Samir Al Khoury

The Saudi TASI index continued to rise for the fourteenth session in a row, recording 12,660 points yesterday, its highest level since August 18, 2022.

It appears that the upward momentum for the index will prevail in the next stage considering the positive sentiment and high trading volumes in the market. This is due to many factors, most notably:

• The business results of most Saudi companies exceeded analysts’ expectations in the fourth quarter of 2023.
• Active initial offerings of Saudi companies that attract both local and foreign investors.
• Despite the disappearance of the positive correlation between oil prices and the Saudi stock market, the trading in oil prices that we are currently witnessing above the $80 level is considered acceptable for the Saudi budget.
• Continued stimulation and support of non-oil sectors by the Saudi authorities.

Foreign investments in the Saudi market are estimated at about 400 billion riyals, which represents about 12% of the total shares available for trading, according to the Chairman of the Saudi Capital Market Authority.

The CEO of the Tadawul Group also confirmed that he wants to see more foreign investments in the Saudi financial market.

From a technical standpoint, it seems clear that the bullish trend of the Tadawul Index (TASI) is dominant at this stage as it officially enters the BULL MARKET. After reaching its lowest level at 10,262 points on October 24, 2023, it rebounded to currently reach 12,660 points, meaning it has risen by about 23% since the bottom it recorded (10,262 points) until today. The next challenge for the Tadawul index is to reach and exceed the psychological level of 13,000 points.

As for the analysis of the MACD indicator, we notice a bullish intersection between the blue MACD line and the orange SIGNAL indicator within the positive zone, which indicates upward momentum for the TASI indicator.

The Relative Strength Index (RSI) also indicates positive momentum for the TASI index, recording approximately 74 points, which is above the 70-point level, i.e. in the overbought area.

Please note that this analysis is provided for informational purposes only and should not be considered as investment advice.

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