The Saudi Exchange (Tadawul) has introduced the TASI50 Index, designed to monitor the performance of the top 50 companies listed on the exchange based on their total market capitalization. The index is continuously calculated and includes the stocks of the largest companies in the market.
To be included in the index, a company must rank among the top 50 in terms of market cap and have a minimum annual traded value ratio (ATVR) of 5 percent, ensuring that it accurately represents the market’s largest players.
The TASI50 Index is a valuable tool for both individual and institutional investors, providing real-time insights into market performance. Additionally, it can be utilized for the creation of financial products and the enhancement of risk management strategies.
Read more: Tadawul unveils new indices to attract investors, diversify economy
Commenting on the launch, Mohammed Al Rumaih, CEO of the Saudi Exchange, said, “The introduction of the TASI50 Index is a significant achievement for the Saudi capital market, providing investors with a comprehensive overview of the performance of the top 50 companies listed on the Saudi Exchange. This index offers a benchmark for investment products, allowing investors to track and benchmark performance based on specific criteria. With this index, both local and foreign investors can access a diverse range of investment opportunities in our dynamic and growing capital market, contributing to the continued development and growth of the Saudi economy.”
Broadening investment strategies
In September 2023, the Saudi Exchange introduced the TASI50 Index, building upon the earlier launch of the Size Indices and IPO Index. The Size Indices offer investors valuable benchmarks to expand their investment strategies and take advantage of specific market opportunities.
Meanwhile, the Tadawul IPO Index tracks the performance of companies listed on the Main Market within the past five years, providing investors with a benchmark to assess the performance of Saudi initial public offerings (IPOs) and enabling them to invest in new and rapidly growing companies.
These launches mark significant achievements in realizing the goals set forth in the Financial Sector Development Program of Saudi Vision 2030.
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