Saudi trades in US equities fall 69% to SAR 14.4 bln in Q4 2022

23/03/2023 Argaam Special

Saudi trades in US equities fall 69% to SAR 14.4 bln in Q4 2022

US stock trading hall


Saudi investors executed sell and buy transactions on US equities at a total value of SAR 14.4 billion through capital market institutions in Q4 2022, a year-on-year (YoY) fall of SAR 31.8 billion, or 69%.

 

These are the lowest Saudi trades in US equities since Q4 2019, when they reached SAR 13.6 billion.

 

The US stock market suffered its biggest annual loss since the global financial crisis in 2008, with the Federal Reserve raising interest rates seven times in 2022 to control inflation.

 

Saudi trades in US stocks through capital market institutions recorded a decline of SAR 8.4 billion from SAR 22.8 billion in Q3 2022, the Capital Market Authority (CMA) said in a report.

 

The CMA report on the trading value of local brokers in the global markets does not include either details of the number of Saudi portfolios abroad, the number of investors trading directly through foreign brokers or their trading volumes.

 

The following table shows Saudi transactions on US equities since Q1 2016:

 

Saudi Transactions on US Equities

Period

Value

(SAR mln)

YoY Change

Q1 2016

6896

--

Q2 2016

6087

--

Q3 2016

7138

+39%

Q4 2016

4183

(45%)

Q1 2017

7992

+16%

Q2 2017

7715

+ 27%

Q3 2017

8497

+19%

Q4 2017

6816

+63%

Q1 2018

11785

+47%

Q2 2018

11078

+44%

Q3 2018

7204

(15%)

Q4 2018

11558

+70%

Q1 2019

11085

(6%)

Q2 2019

6472

(42%)

Q3 2019

14682

+104%

Q4 2019

13561

+17%

Q1 2020

29552

+167%

Q2 2020

81338

+1157%

Q3 2020

114246

+678%

Q4 2020

98229

+624%

Q1 2021

77410

+162%

Q2 2021

60647

(25%)

Q3 2021

50644

(56%)

Q4 2021

46206

(53%)

Q1 2022

39945

(48%)

Q2 2022

71040

+17%

Q3 2022

22808

(55%)

Q4 2022

14407

(69%)

 

Saudi transactions in the US market accounted for nearly 90% of total trading in foreign markets, which stood at SAR 16.1 billion, the Saudi market regulator added.

 

The table below indicates sell and buy transactions on US equities executed by Saudi investors through authorized market institutions in foreign markets in Q4 2022:

 

Traded Value by Authorized Market Institutions in Foreign Markets (SAR mln)

Region

Value

Percentage

US

14,407.40

89.7 %

GCC

1,204.09

7.5 %

European

289.82

1.8 %

Arabian

99.88

0.6 %

Asian

31.28

0.2 %

Other

20.48

0.1 %

Total

16,052.95

100%

 

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