FTSE rebalancing drives SAR 2.2B Tadawul auction volume

The Saudi Exchange's closing auction saw 59.4 million shares change hands worth about SAR 2.2 billion on Tuesday, June 18, as FTSE Russell implemented its quarterly index changes.

The exchange runs a closing auction from 3:00 p.m. to 3:20 p.m. local time, where the last 20 minutes determine the final settlement price for the session. The FTSE rebalancing triggered large block trades during that period. The main TASI index added 12 points in the auction window, Argaam reported.

The difference between the preliminary close at 3:00 p.m. and the final close after the auction reflects the rebalancing flows. FTSE Russell's quarterly review of its Saudi index constituents led to weight adjustments for several stocks, forcing passive funds to adjust positions in the closing auction.

Such rebalancing events routinely concentrate volume into the final 20 minutes as index-tracking managers execute trades at the market-on-close price. Tuesday's turnover of nearly SAR 2.2 billion across 18,179 transactions exceeded typical daily auction volumes, according to exchange data.

The changes took effect after Tuesday's close. The next quarterly review from FTSE Russell is scheduled for September.