TASI Delivers Record Weekly Surge, Bullish Sentiment Builds Up

Weekly Performance

Last week, the Tadawul All Share Index (TASI) delivered a stellar run — surging over 8% (880 points) during the week and finally settling with a nearly 5% gain at 11,308. On a closing basis, this marks the biggest weekly advance in the past three years, last seen in the third week of July 2022.

Fundamental Backdrop

The rally was powered by a game-changing development: reports that the government may ease the 49% foreign ownership cap on listed companies.

• Such a reform could open the floodgates for global institutional investors.

• Passive inflows from index trackers like MSCI and FTSE could pour into the market.

• According to UBS estimates, as much as $9.5 to $10 billion could flow into Saudi equities if the cap is fully lifted.

This prospect of deeper foreign participation has reignited investor confidence and fueled buying momentum.

Technical Picture

In our previous weekly outlook, we highlighted the formation of a bullish engulfing candlestick pattern near the support zone — signaling a potential turnaround. This week’s rally validated that view.

• Key breakout: The index successfully cleared the 11,000 resistance zone, shifting the market tone firmly into bullish territory.

• On the daily chart, a Double Bottom pattern — a classic reversal setup — further strengthens the case for continued upside.

Key Levels

• Support: Immediate cushion at 10,900 – 11,000, with stronger support at 10,400 – 10,500.

• Resistance: Near-term barrier at 11,300 – 11,400, with stronger resistance at 11,700 – 11,800.

Strategy Ahead

With both fundamentals and technicals aligning, the broader outlook remains constructive. A buy-on-dips approach in technically strong stocks, coupled with disciplined risk management, looks to be the most rewarding strategy in the current setup.