Article details
Foreign institutions were net sellers of Saudi equities during the week ending October 1, disposing of SAR 751.6 million worth of TASI shares, according to weekly trading data from Tadawul. Foreign institutional trades represented 42.67% of total buying activity and 46.72% of total selling activity across the exchange. Saudi institutional investors also turned net sellers, unloading SAR 464.7 million in shares, driven primarily by corporate sell-offs totaling SAR 849.7 million.
In contrast, local retail market participants absorbed much of the institutional selling pressure. Saudi retail investors emerged as net buyers of SAR 1.17 billion, supported by high-net-worth individuals purchasing SAR 591.7 million and retail investors adding SAR 523.9 million. Meanwhile, local investment funds provided additional institutional support by recording net purchases of SAR 410.8 million during the same weekly period.
The divergence between foreign institutional selling and domestic retail buying reflects shifting risk sentiment within the Saudi stock market. Traders should monitor institutional capital flows closely, as persistent foreign outflows can create downward pressure on large-cap index constituents, whereas steady retail accumulation helps stabilize broader market liquidity.
