On an YTD basis TASI registered a positive return of 1.74 percent (115.23 points). Highest close level for the index during the month was 6,754.82 as on May 29, the report said.

Total equity market capitalization at the end of May reached SR1.34 trillion ($ 358.31 billion), decreased by 0.17 percent over the close of the previous month.

The total value of shares traded for the month of May reached SR126.44 billion ($33.72 billion), increased by 12.77 percent over the previous month, the report added.

The total number of shares traded reached 6.22 billion in May compared to 5.01 billion shares traded for the previous month, increasing by 24.13 percent.

The total number of transactions executed during May reached 2.87 million compared to 2.45 million trades for the month of April, increasing by 16.96 percent.

Commenting on the latest Tadawul report, Jarmo T. Kotilaine, chief economist at the National Commercial Bank (NCB), said: "The May data for Tadawul is a mixed bag. While the lackluster performance of the index is good news in as much as it underscores the return of market stability, we are also once again looking at a chasm between market behavior and the expectations for the economy."

He said the economic outlook had improved significantly in recent weeks, above all thanks to the various government spending programs. Nonetheless, even as Saudi Arabia is further consolidating its position as one of the bright spots of the global economy, the markets are yet to fully reflect this beyond their speedy rebound to pre-crisis conditions. On the positive side, this should signal new value opportunities going forward.

What is more encouraging about the data is the continued positive progress in trading volumes and values, which has clearly surprised on the upside. It remains to be seen to what extent this will turn into a trend and mark the return of large numbers of investors to the market. On this, the evidence is still somewhat mixed. But the positive progress in this area is good news for the Saudi capital markets and potentially reflective of increased confidence in the economy, Kotilaine said.