CMA says margin lending to Tadawul investors down to SAR 18.8 bln in Q3

Saudi Arabian banknotes

The total margin commitment offered by capital market institutions to investors on the Saudi Exchange (Tadawul) fell by 1% to SAR 18.8 billion in Q3 2023, according to the report issued recently by the Capital Market Authority (CMA).

Meanwhile, the number of investors borrowing from brokers in Tadawul dropped by 2% to reach 6,699 compared to 6,814 in Q3 2022.

The outstanding balance rose slightly by 0.5% to SAR 15 billion in Q3 2023, compared to SAR 14.96 billion a year earlier.

Data also showed that the percentage of outstanding balance/total margin commitment stood at 79.8% in Q3 2023, compared to 78.3% in Q3 2022.

The margin financing is divided into direct financing from the capital market institutions to investors and indirect financing from a third party.

The table below indicates such details:

The number of Tadawul investors grew 4% quarter-on-quarter (QoQ) in Q3 2023. Total margin commitment and outstanding balance, meanwhile, edged up by 7% and 8% QoQ, respectively, as the following table shows: