Tadawul passes 2020 test with flying colors

Tadawul passes 2020 test with flying colors

Predictions that stock markets were due a significant correction failed to materialize. Despite the economic shock, falling revenue and profits and general uncertainty, corporate equities continued to benefit from the global liquidity phenomenon.The TASI Index — which gauges the performance of the biggest companies listed in Riyadh — recovered from a big downturn in spring to end the year strongly, well above the 8,000-point level for most of the final quarter.The constituents behind that surge reflected the way that the pandemic has re-ordered investor and economic priorities. The biggest gaining sectors included consumer durables, food retailing, software, services, pharmaceuticals and healthcare. People want to eat, shop and stay healthy during the pandemic.It is worth noting, however, that some of the more significant sectors that make up the index — such as real estate, banks and energy — lagged behind, with single-digit negative performances compared to the big percentage gains by the others.But overall market strength was enough to persuade a raft of corporates that the time was right to list their shares on Tadawul. In this, of course, they were following in the footsteps of Saudi Aramco, which just over a year ago pulled off the biggest initial public offering