By Samir Al Khoury,

The Saudi TASI index continues its upward trajectory for the eighth consecutive session, reaching 12,220 points today, its highest level since 22 July 2024, reflecting an increase of approximately 2% since the beginning of the year.

This rise in the TASI index has been driven by several stocks, most notably “Al Rajhi Bank,” which recorded 89.5 riyals yesterday—its highest level since 28 February 2024—and is currently trading near 89 riyals.

The upward momentum of the index is likely to remain dominant in the coming period, supported by positive sentiment due to several key factors:

• The results of most Saudi companies exceeded analysts’ expectations in the second quarter of 2024.

• The strong activity of initial public offerings by Saudi companies, attracting both local and foreign investors.

• Continued support and stimulation of non-oil sectors by Saudi authorities.

• Expectations of three US interest rate cuts this year, with the first cut likely in September, which would provide positive momentum for Saudi stocks.

• The TASI index is influenced by sentiment and buying and selling pressures in the US markets. Generally, when the S&P 500 index rises, the TASI index follows suit, and vice versa. Although this correlation may not always be consistent, it is currently significant.

From a technical perspective, the TASI index is trading above the 50-day moving average at 11,869 points and the 200-day moving average at 11,976 points. Any bullish crossover or “golden cross” between these two averages could indicate an upward trend for the TASI index.

Regarding the MACD indicator, a bullish crossover has been observed between the blue MACD line and the orange SIGNAL line within the positive zone, signaling continued upward momentum for the TASI index.

Additionally, the Relative Strength Index (RSI) indicates positive momentum for the TASI index, currently registering approximately 64 points.

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

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