The percentage of institutional investment in the stock market in Saudi Arabia has declined for the fifth consecutive quarter.
The decline rate reached 95.95% at the end of the second quarter of this year, compared to 96.35% for the previous quarter, with a difference of 40 basis points.
This decline coincides with the large increases in stocks, especially the shares of small and speculative companies, which are usually of greater interest than the category of individuals, the “noninstitutional investor”.
This is in addition to some exits that occurred by the institutional investment categories during the period, which was reflected in the volume of noninstitutional investment.
The value of the institutional investor’s ownership amounted to about 9.33 trillion riyals, compared to about 9.27 trillion riyals for the previous quarter.
The ownership of noninstitutional investment amounted to about 393.8 billion riyals, compared to about 360 billion riyals for the previous quarter.
The percentage of noninstitutional investment in the Saudi stock market rose to 4.05 percent at the end of the second quarter of this year. This is compared to about 3.74 percent during the previous quarter and about 3.09 percent for the first quarter of 2020.
Institutional investment is the investment behavior in which there is professionalism and the ability to realize risks and build decisions.
It includes companies, investment funds, government agencies, specialized individuals, managed portfolios for Saudis or others, in addition to Gulf institutions and foreign investors of all categories.
On the other hand, the noninstitutional investment consists of individuals, large individual investors, and the individual Gulf investor, in addition to resident foreigners.
The percentage of institutional investment in the stock market continued to decline in favor of non-institutional investment for the fifth consecutive quarter, as their percentage amounted to about 96.94 percent during the first quarter of 2020.
This was as the highest percentage recorded, which was matched by the ownership rate of the noninstitutional investor at 3.06 percent at the time.