Financial markets play a crucial role in the foundation of the stable and efficient financial system of an economy. This research paper identifies the factors affecting the performance of the stock market in Saudi Arabia, known as aggregate (Tadawul), while the index is called Tadawul All Stock Index (TASI). The movements in the stock market can be quite volatile and sometimes movements in share prices can seem divorced from economic factors [1]. However, there are certain underlying factors which have a strong influence over the movement of share prices and the stock market in general. In this paper, we discuss the factors affecting the Saudi stock market, where the main factors have been identified, together with their own sub factors. It can be discerned that generally, shares will be in greater demand when investors have the prospect of earning more dividends. Therefore, factors which make firms more profitable will tend to cause a rise in stock markets.
展开▼
