Saudi bourse dips as closing prices are recalculated
The Tadawul All Share Index in Riyadh fell by 0.36 per cent to 9,508.57 points on Sunday, April 13. Earlier in the day, the Saudi Stock Exchange said it started applying the Volume Weighted Average Price (VWAP) mechanism to calculate the closing price. VWAP is mostly used as a trading benchmark and some fund managers insist when dealing with their brokers to only pay the VWAP when buying or selling shares (VWAP guaranteed) in order to avoid buying at the lowest or selling at the highest intra-day stock price. Islamic bank, Alinma, was the most liquid share, ending down by 1.38 per cent at SAR17.85. Saudi Industrial Export Company and AXA Cooperative Insurance both gained the most, closing ten per cent higher (limit up).