On June 3, 2008 when Alinma Bank started trading, the highest volume of 749.4 million shares was recorded.

The Tadawul All-Share Index (TASI) ended 0.27 percent higher at 7,168.99 points — a new 41-month high since September 2008. Stocks worth SR16.10 billion changed hands yesterday, the highest in a session since January 2008. 

Commenting on the stock market's surge in volume and value, Basil Al-Ghalayini, chairman of BMG Financial Group, said: “Definitely, there is an excessive liquidity in the market chasing the stock market as the real estate market became less attractive with such inflated prices. We are still witnessing two avenues of investments in the country; either equities or real estate.”

However, Jarmo T. Kotilaine, chief economist at the National Commercial Bank, said it is clear that the Saudi stock market has developed substantial momentum going into 2012.

“There is some anecdotal evidence to suggest that investors have channeled funds from other asset classes into equity. One possibility is land where the robust upward momentum of recent years is being tested by concerns over new zakah proposals for underdeveloped land. But more encouragingly, the Saudi equity market is fairly reasonably valued by both historical and international standards.”

At the same time, Kotilaine said, “Economic prospects remain very benign with increasingly broad-based growth and fairly resilient confidence levels. The upward pressures in the oil market are boosting the standing and prospects of the Saudi petrochemicals sector.”