Difference between revisions of "Saudi Stock Exchange"

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{{Infobox_Company <!-- Feel free to remove comments like this when you add real info -->
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{{Infobox_Company
| company_name = Tadawul
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| company_name = Saudi Stock Exchange (Tadawul)
| company_logo =   [[image:Tadawul.gif]]  
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| company_logo = [[Image:Tadawul.jpg]]
| key_people =     <!-- CEO, President, etc, don't need to list everybody -->
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| key_people = Chairman Fahad al-Mubarak
| foundation =     2001
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| foundation = July 200 
| location =       Riyadh, Saudi Arabia
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| location = Riyadh, Saudi Arabia
| employees =      <!-- Approx number of employees -->
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| products = Tadawul All Share Index 
| products =       Cash equities, bonds and mutual funds
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| homepage = http://www.tadawul.com.sa/wps/portal/!ut/p/c1/04_SB8K8xLLM9MSSzPy8xBz9CP0os3gDAxN3D0NnN19nAzMPzxBDV0sDKNAPTizS9_PIz03VL8h2VAQAoiPkbg!!/dl2/d1/L0lHSkovd0RNQUprQUVnQSEhL1lCWncvZW4!/}}
| homepage=   http://www.tadawul.com.satp/  
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}}
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The Saudi Stock Exchange (Tadawul) is the country’s only securities platform, and with a market capitalization of SR1,946bn at the end of 2007 ranks as one of the world’s largest emerging-market bourses. The electronic platform, recently upgraded by [[OMX]] also lists bonds and mutual funds.
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The Saudi Stock Exchange (SSE), known locally by its Arabic name Tadawul, is by far the largest [[securities]] exchange in the Middle East and more than twice the size by [[market capitalization]] of second-ranked [[Kuwait Stock Exchange]]. Trading on SSE and its [[benchmark]] All Share Index rebounded from a sharp downturn in 2008 to post an impressive rebound in 2009, and looks to continue that momentum based on early 2010 results.
  
The state-owned Tadawul was converted to a joint stock company in 2007, and is slated for an IPO within two years. Officials are also considering the lifting of restrictions on share-dealing by foreigners<ref>{{cite web|url=http://us.ft.com/ftgateway/superpage.ft?news_id=fto011020081802161579|org=Financial Times|name=Interview|date=January 15, 2008}}</ref>.
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{{Infobox Midpage Need Sponsor}}
  
== History ==
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==Backgound==
The Tadawul was launched in October 2001, replacing the bank-run trading system expanded during the 1980s, and introducing electronic trading in 1991. A new system, provided by OMX, was introduced in 2007.
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Market capitalization rose from SR275bn in 2001 to SR1,946bn at the end of 2007, with 107 [http://www.tadawul.com.sa/wps/portal/!ut/p/.cmd/cs/.ce/7_0_A/.s/7_0_4AO/_s.7_0_A/7_0_4AO/ listed companies] drawn from banking and diversified industrial and construction, providing the platform for the country's privatization program. The exchange was converted into a joint stock company in March 2007 with a capital of SR1.2bn controlled by the state Public Investment Fund<ref>{{cite web|url=http://www.tadawul.com.sa/wps/portal/!ut/p/_s.7_0_A/7_0_4A7?PRESS_REL_NO=1347|org=Tadawul|name=History|date=January 15, 2008}}</ref>.
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== Structure and Regulation ==
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The beginnings of the Saudi Stock Exchange (SSE) stirred in 1984 when a ministerial committee was formd to develop and regulate the country's securities market. A further evolutionary leap was made in 2003 with the formation of the SSE's new regulator, the Saudi Capital Markets Authority (CMA), and the market continued to grow rapidly until the 2007-2008 global financial crisis. In 2007 the SSE was converted from a mutually-owned organization intp a joint-stock company, the same year the exchange switched its [[electronic trading]] system to one provided by Swedish electronic exchange developer [[OMX]].<ref>{{cite web|url=http://www.tadawul.com.sa/wps/portal/!ut/p/c1/04_SB8K8xLLM9MSSzPy8xBz9CP0os3gDdwNHH0tLf1c3AzMPD0dnxzADKND388jPTdUPTizSL8h2VAQAgeJkxw!!/dl2/d1/L0lHSkovd0RNQUZrQUVnQSEhL1lCWncvZW4!/|name=Development Stages|org=Saudi Stock Exchange|date=March 8, 2010}}</ref> 
The exchange is regulated by the [[Capital Markets Authority]], and trading hours are 11:00am-3.30pm, with 21 registered brokers, including affiliates of overseas institutions such as Deutsche Bank.
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With the investment market sliding in 2008 the SSE's regulator, the Saudi Capital Markets Authority (CMA), moved to shore it up by encouraging foreign investment on the SSE. In August 2008 the CMA released new investment rules for non-resident foreign investors that allowed them to enter swap agreements with Saudi intermediaries, in effect allowing them a form of indirect ownership of Saudi Arabian securities, Reuters reported.<ref>{{cite web|url=http://www.thepeninsulaqatar.com/Display_news.asp?section=Business_News&subsection=market+news&month=August2008&file=Business_News200808275375.xml|name=Saudi unveils rules for foreign investors|org=Reuters|date=March 8, 2010}}</ref>
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==Key products==
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The SSE's [[benchmark]] Tadawul All Share Index (TASI) had its calculation method changed in 2007 to exclude shares owned by Saudi government entities, foreign partners, founding partners during a restriction period and those owning more than 10% of SSE's shares.<ref>{{cite web|url=http://www.tadawul.com.sa/wps/portal/!ut/p/c1/04_SB8K8xLLM9MSSzPy8xBz9CP0os3gDAxN3D0NnN19nAzMPzxBDV0sDKND388jPTdUPTizSL8h2VAQAm2h6Ew!!/dl2/d1/L0lHSkovd0RNQUZrQUVnQSEhL1lCWncvZW4!/|name=Tadawul All Share Index|org=Saudi Stock Exchange|date=March 8, 2010}}</ref> The CMA also introduced four new equities-market sectors into the TASI calculation: banking, insurance, communications and cement.
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==Recent performance==
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The SSE was the region's best-performing equities market in 2009, gaining 27.5% after losing about 60% of its value over the disastrous 2008, and rising oil prices are expected to fuel contiued upward momentum through 2010.<ref>{{cite web|url=http://www.alarabiya.net/articles/2009/12/31/95944.html|name=Saudi market has best 2009 performance - most Gulf markets end year up after huge losses|org=Reuters|date=March 4, 2010}}</ref> In mid-2009 the Saudi Stock Exchange was ranked number one in the region with a market capitalisation of $287.5 billion compared to second-ranked Kuwait's $122.3 billion.<ref>{{cite web|url=http://www.dailytimes.com.pk/default.asp?page=2009%5C07%5C05%5Cstory_5-7-2009_pg5_14|name=Gulf Arab stock exchanges - FACTBOX|org=Daily Times (Pakistan)|date=March 5, 2010}}</ref>
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In the first quarter of 2010 the SSE has continued to grow in value, increasing its market capitalization to $331.22 billion by the end of January 2010 and then to $399.24 billion one month later.<ref>{{cite web|url=http://www.zawya.com/Story.cfm/sidZAWYA20100307034041/Saudi%20Equity%20Market%20Cap%20Rises%20To%20SR1.27%20Trillion|name=Saudi equity market cap rises to SR1.27 trillion|org=Zawya|date=March 8, 2010}}</ref> Over the same period (January - February 2010) the Tadawul All Share Index (TASI) has risen 5.16% and over the year to the end of January 2010 the TASI has increased by just over 30%.
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==Key people==
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SSE Chairman Dr. Fahd Al-Mubarak was appointed in 2009 after being named to the exchange's board of directors in November 2007 from the SSE's pool of eligible licensed [[broker]] members.<ref>{{cite web|url=http://archive.arabnews.com/?page=1&section=0&article=103773&d=20&m=11&y=2007&pix=kingdom.jpg&category=Kingdom|name=Cabinet Approves New Tadawul Board|org=Arab News|date=March 9, 2010}}</ref> Al-Mubarak has a two-decade history in the Saudi investment industry and has been closely involved with prominent Saudi [[privatization]]s such as the National Gas Industry of Saudi Arabia and Saudi Telecom.<ref>{{cite web|url=http://www.whartondubai09.com/bio-almu.html|name=Dr. Fahad Abdullah Almubarak|org=Wharton Global Alumni Forum|date=March 9, 2010}}</ref> He founded Saudi investment bank The Capital Group (TCG) in 2001 and subsequently became chairman of Morgan Stanley Saudi Arabia after TGC entered a [[joint venture]] with the American [[investment bank]] in January 2007.<ref>{{cite web|url=http://www.morganstanley.com/about/press/articles/4256.html|name=Morgan Stanley Announces Joint Venture in Saudi Arabia|org=Morgan Stanley|date=March 9, 2010}}</ref>
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==Latest news==
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Despite early positive signs in 2010 for the SSE, negative investor sentiment for the countries of the Gulf Co-operation Council (GCC) appears to be dragging down the exchange's outlook. According to a recent poll of GCC investor sentiment, the 2010 February's overall GCC Investor Confidence Index fell 8.9 points while the Saudi index dropped 8.7 points, the second-largest decline after the United Arab Emirates.<ref>{{cite web|url=http://www.albawaba.com/en/countries/UAE/262138|name=Uncertainty takes its toll – SHUAA GCC Investor Confidence Index slips 7.8% to 105.6 in February|org=Al Bawaba|date=March 9, 2010}}</ref>
  
 
== References ==
 
== References ==
 
<references />
 
<references />
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== External Links ==
 
== External Links ==

Revision as of 15:05, 9 March 2010

Saudi Stock Exchange (Tadawul)
Tadawul.jpg
Founded July 200
Headquarters Riyadh, Saudi Arabia
Key People Chairman Fahad al-Mubarak
Products Tadawul All Share Index
Website http://www.tadawul.com.sa/wps/portal/!ut/p/c1/04_SB8K8xLLM9MSSzPy8xBz9CP0os3gDAxN3D0NnN19nAzMPzxBDV0sDKNAPTizS9_PIz03VL8h2VAQAoiPkbg!!/dl2/d1/L0lHSkovd0RNQUprQUVnQSEhL1lCWncvZW4!/

The Saudi Stock Exchange (SSE), known locally by its Arabic name Tadawul, is by far the largest securities exchange in the Middle East and more than twice the size by market capitalization of second-ranked Kuwait Stock Exchange. Trading on SSE and its benchmark All Share Index rebounded from a sharp downturn in 2008 to post an impressive rebound in 2009, and looks to continue that momentum based on early 2010 results.

Template:Infobox Midpage Need Sponsor

Backgound

The beginnings of the Saudi Stock Exchange (SSE) stirred in 1984 when a ministerial committee was formd to develop and regulate the country's securities market. A further evolutionary leap was made in 2003 with the formation of the SSE's new regulator, the Saudi Capital Markets Authority (CMA), and the market continued to grow rapidly until the 2007-2008 global financial crisis. In 2007 the SSE was converted from a mutually-owned organization intp a joint-stock company, the same year the exchange switched its electronic trading system to one provided by Swedish electronic exchange developer OMX.[1]

With the investment market sliding in 2008 the SSE's regulator, the Saudi Capital Markets Authority (CMA), moved to shore it up by encouraging foreign investment on the SSE. In August 2008 the CMA released new investment rules for non-resident foreign investors that allowed them to enter swap agreements with Saudi intermediaries, in effect allowing them a form of indirect ownership of Saudi Arabian securities, Reuters reported.[2]

Key products

The SSE's benchmark Tadawul All Share Index (TASI) had its calculation method changed in 2007 to exclude shares owned by Saudi government entities, foreign partners, founding partners during a restriction period and those owning more than 10% of SSE's shares.[3] The CMA also introduced four new equities-market sectors into the TASI calculation: banking, insurance, communications and cement.

Recent performance

The SSE was the region's best-performing equities market in 2009, gaining 27.5% after losing about 60% of its value over the disastrous 2008, and rising oil prices are expected to fuel contiued upward momentum through 2010.[4] In mid-2009 the Saudi Stock Exchange was ranked number one in the region with a market capitalisation of $287.5 billion compared to second-ranked Kuwait's $122.3 billion.[5]

In the first quarter of 2010 the SSE has continued to grow in value, increasing its market capitalization to $331.22 billion by the end of January 2010 and then to $399.24 billion one month later.[6] Over the same period (January - February 2010) the Tadawul All Share Index (TASI) has risen 5.16% and over the year to the end of January 2010 the TASI has increased by just over 30%.

Key people

SSE Chairman Dr. Fahd Al-Mubarak was appointed in 2009 after being named to the exchange's board of directors in November 2007 from the SSE's pool of eligible licensed broker members.[7] Al-Mubarak has a two-decade history in the Saudi investment industry and has been closely involved with prominent Saudi privatizations such as the National Gas Industry of Saudi Arabia and Saudi Telecom.[8] He founded Saudi investment bank The Capital Group (TCG) in 2001 and subsequently became chairman of Morgan Stanley Saudi Arabia after TGC entered a joint venture with the American investment bank in January 2007.[9]

Latest news

Despite early positive signs in 2010 for the SSE, negative investor sentiment for the countries of the Gulf Co-operation Council (GCC) appears to be dragging down the exchange's outlook. According to a recent poll of GCC investor sentiment, the 2010 February's overall GCC Investor Confidence Index fell 8.9 points while the Saudi index dropped 8.7 points, the second-largest decline after the United Arab Emirates.[10]

References

  1. Development Stages. Saudi Stock Exchange.
  2. Saudi unveils rules for foreign investors. Reuters.
  3. Tadawul All Share Index. Saudi Stock Exchange.
  4. Saudi market has best 2009 performance - most Gulf markets end year up after huge losses. Reuters.
  5. Gulf Arab stock exchanges - FACTBOX. Daily Times (Pakistan).
  6. Saudi equity market cap rises to SR1.27 trillion. Zawya.
  7. Cabinet Approves New Tadawul Board. Arab News.
  8. Dr. Fahad Abdullah Almubarak. Wharton Global Alumni Forum.
  9. Morgan Stanley Announces Joint Venture in Saudi Arabia. Morgan Stanley.
  10. Uncertainty takes its toll – SHUAA GCC Investor Confidence Index slips 7.8% to 105.6 in February. Al Bawaba.


External Links