The Saudi Exchange has launched four new indices, marking a significant step forward in the development of the Saudi capital market. 

 

These indices, based on company size and IPO performance, provide investors with a broad range of investment benchmarks while enabling institutions to offer new products to meet growing investor strategies. 

 

The Size Indices introduced by the Saudi Exchange reflect the market's composition, with Tadawul Large companies accounting for 70% of the free float market cap, Tadawul Medium-sized companies accounting for 20%, and Tadawul Small companies comprising the remaining 10%.  The Size Indices provide investors with benchmarks to broaden their investment strategies and to capitalise on specific market opportunities.

 

Tadawul IPO Index

In addition, the Tadawul IPO Index will be introduced to track the performance of companies listed on the Main Market within the past five years. This index will provide investors with a benchmark to evaluate the performance of their IPOs and a unique opportunity to invest in new and rapidly growing companies. 

 

Similar to the current Tadawul All Share Index (TASI), the maximum weight of any index constituent will be 15%, ensuring a balanced representation of the entire market. 

 

These new indices serve as valuable benchmarks for specific investment products, allowing institutional investors to track the performance and activities of different segments of the market. 

 

Balanced representation

Mohammed Al Rumaih, CEO of the Saudi Exchange, said: "By introducing size indices that reflect the market's composition, we aim to provide a balanced representation of the market and offer investors a diverse range of investment opportunities. Furthermore, the Tadawul IPO Index will enable investors to participate in the growth potential of new and rapidly expanding companies listed on the Main Market. 

 

“We believe these indices will serve as valuable benchmarks for investment products and will allow both local and foreign investors to access and benefit from our dynamic and growing capital market.”-- TradeArabia News Service