Saudi Tadawul: Private deals and a surge in daily trading put the market back in the spotlight

No sooner had yesterday's session closed than the talk in financial circles and gatherings was all about one thing: the surge in private deals in the Saudi market. It's not unusual for our market to be this vibrant, but the latest figures have truly caught the eye. We're talking about eight private deals executed in a single day, valued at over SAR 30.78 million – a powerful indicator that the major players are moving pieces on the chessboard quietly, but with confidence.

These deals, typically executed outside the framework of regular daily trading on the open market, send clear signals to the savvy investor. They aren't just numbers; they represent the strategies of major shareholders and institutions reshuffling their positions. In this context, the conversation naturally turns to a sophisticated electronic trading platform capable of absorbing such volumes without causing sharp price fluctuations. Our local platform, "Tadawul," has once again proven itself more than capable of managing this significant liquidity.

Why should the average trader care about these deals?

You might ask: "I'm a day trader, what do I care about these large transactions?" The truth is, their impact is like a wave that reaches every shore. When the market witnesses such strong trading activity, it reshapes liquidity channels and paves the way for new opportunities. For instance, stocks involved in private deals often find strong support at certain levels, or they can trigger a new price movement after an accumulation phase.

For the individual investor seeking a flexible tool to track these movements, it's worth highlighting the role played by smart applications like the XM App – Trade with Confidence. These apps are no longer just a means to execute orders; they have become a window into real-time analytics, enabling you to see where smart money is heading before everyone else. Confidence here isn't just a slogan; it stems from the transparency and speed of execution these platforms provide.

Beyond the exchange: the world of off-exchange trading

A large part of the activity we see on trading screens actually reflects movements happening behind the scenes, in what's known as off-exchange trading (OTC). This type of trading is the arena for major investors who prefer to execute large transactions away from the immediate spotlight to avoid an instant impact on the price. Just last week alone, the Saudi market saw several such deals in leading stocks, reflecting institutional confidence in these companies' futures, even if daily trading experiences some volatility.

To paint a clearer picture, here are the key features of this activity:

• Deal Volume: The value of recently executed private deals exceeded the SAR 30 million mark in a single session, indicating substantial liquidity.
• Electronic Execution: All were conducted via a trusted electronic platform ensuring the rights of all parties involved.
• Future Impact: These deals are often followed by a wave of increased interest in the stock during subsequent daily trading sessions.

The bottom line is that the Saudi market is going through an exceptional phase of maturation, where the tools of professional investors intersect with the easy access provided by modern apps. Whether you're a follower of daily trading or a long-term portfolio holder, keeping an eye on private deal movements and trading volumes remains the most accurate compass in the sea of financial markets. Happy trading.