What is TASI
Detailed explanation of the TASI index — how it is calculated and its components
Back to TASI IndexWhat is TASI (Tadawul All Share Index)?
TASI (Tadawul All Share Index) is the main benchmark index of the Saudi Stock Exchange (Tadawul). It represents the overall performance of all companies listed on the main market and is considered the most important indicator of the health and direction of Saudi equities.
History of the Index
TASI was established in 1985 when stock trading in Saudi Arabia was first formally regulated. The index started at a base value of 1,000 points. Since then, it has gone through several historic milestones, most notably reaching an all-time high of 20,635 points in February 2006, followed by a sharp correction that erased more than 65% of its value.
Calculation Methodology
TASI is calculated using the free-float market capitalization weighting methodology. This means each company's weight in the index is determined by its share price multiplied by the number of its freely tradable shares (excluding strategic holdings). Companies with larger free-float market caps have a proportionally greater impact on the index's movement.
What the Index Covers
TASI includes all companies listed on the main market (over 200 companies) across all sectors. This differs from other indices such as the Tadawul 30 (MT30), which includes only the top 30 companies, or sector-specific indices that track a single sector.
Largest Index Movers
Large-cap stocks dominate index movement. Saudi Aramco, Al Rajhi Bank, Saudi National Bank, and SABIC together account for a significant portion of the index weight. Therefore, price movements in these blue-chip stocks have a notable impact on the overall direction of TASI. You can view the full index components and track TASI today for real-time performance.
Why Does TASI Matter?
Performance Benchmark
Investors and fund managers use TASI as the standard benchmark for measuring portfolio performance. If your portfolio return exceeds TASI, you are outperforming the market.
Economic Indicator
The index reflects the health of the Saudi economy and investor expectations. A rising index typically signals economic optimism, while a decline may suggest caution.
Foreign Investment Magnet
TASI's inclusion in major emerging-market indices (MSCI, FTSE) has attracted billions of dollars in passive foreign investment flows.
Foundation for Financial Products
Exchange-traded funds (ETFs) and futures contracts rely on TASI or its derivatives as the basis for tracking overall market performance.
Frequently Asked Questions About TASI
What is the TASI index?
TASI (Tadawul All Share Index) is the main benchmark index of the Saudi Stock Exchange (Tadawul). It tracks the performance of all companies listed on the main market and is calculated using free-float market capitalization weighting. Established in 1985, TASI serves as the primary gauge of Saudi equity market health.
How is the TASI index calculated?
TASI is calculated by summing the free-float adjusted market capitalizations of all listed companies and dividing by an adjusted divisor. Free float refers to shares available for public trading, excluding strategic and government holdings. The index composition is reviewed quarterly.
What is the difference between TASI and Nomu?
TASI covers companies listed on the main market (large and mid-cap), while Nomu covers companies on the parallel market (small and mid-cap with lower listing requirements). TASI is more liquid, more stable, and has a significantly larger number of constituents.
What are the TASI trading hours?
TASI is updated in real time during trading hours from 10:00 AM to 3:00 PM Riyadh time (GMT+3), Sunday through Thursday. The index is not updated on Fridays, Saturdays, and official holidays.
Can I invest directly in the TASI index?
You cannot buy the index directly, but you can invest in exchange-traded funds (ETFs) that track the TASI or the Tadawul 30 index. These funds provide broad market exposure at a relatively low cost.
Information provided is for educational purposes only and does not constitute investment advice. Historical data does not guarantee future performance.