The Saudi Exchange (Tadawul) has created the TASI50 Index to monitor the performance of the top 50 listed companies on the exchange by total market capitalisation. The major market businesses’ stocks are included in the index, which is updated regularly.
For a firm to be incorporated into the index, it must be ranked within the top 50 in terms of market capitalisation and possess a minimum annual traded value ratio (ATVR) of 5%. This ensures that the index fairly represents the biggest players in the market.
The TASI50 Index offers real-time insights into market performance, making it a useful tool for institutional and individual investors alike. It can also be applied to the improvement of risk management techniques and the development of financial products.
“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,” stated Mohammed Al Rumaih, CEO of the Saudi Exchange, in response to the launch.
Investors can track and benchmark performance based on particular criteria by using this index, which provides a benchmark for investment products.
This index facilitates access to a wide array of investment options in our dynamic and expanding capital market for both domestic and foreign investors, thereby supporting the ongoing development and expansion of the Saudi economy.
Extending The Investment Scope
Building on the success of the Size Indices and IPO Index, the Saudi Exchange unveiled the TASI50 Index in September 2023. By providing investors with useful benchmarks, the Size Indices enable them to broaden their investment strategies and capitalise on particular market possibilities.
Investors can use the Tadawul IPO Index, which analyses the performance of companies listed on the Main Market over the last five years, as a benchmark to evaluate the success of Saudi IPOs and to make investments in startups that are expanding quickly.
These releases represent major steps in achieving the objectives outlined in Saudi Vision 2030’s Financial Sector Development Programme.