For the first time .. 3 short selling deals executed in the Saudi ‎stock market in one session ‎

The financial market data “Tadawul” revealed the execution of 3 short-selling deals in the market on the shares of ACWA Power, Northern Cement and Dallah Health Services companies in one day according to the details below.

These are the tenth and third deals on the shares of Dallah Health Company that take place in the Saudi stock market, where 7 previous deals took place, including 3 on Dar Al-Arkan, and a short sale deal was carried out in the market on the shares of the Advanced Company. Last January, a deal took place on the Saudi Arabian Mining Company (Maaden) on Thursday, corresponding to the 1st of last December, while a short sale deal took place in the market on the shares of Dar Al-Arkan Company, for the first time in the history of the market, the financial market, on Wednesday, November 9th. In the past, in addition to executing a deal on the shares of Dar Al-Arkan Company on Wednesday, corresponding to December 7, 2022, and also executing a short sale transaction in the market on the shares of Dar Al-Arkan Company, according to the data, the capacity took place on Thursday, corresponding to December 8, and it took place last Wednesday corresponding to the 15th. February, a short sale transaction in the market on the shares of Dallah Health Services Company, and also a short sale transaction in the market on the shares of Dallah Health Services Company, and according to the data, the capacity took place on Thursday, corresponding to February 16, 2023.

Saudi Stock Exchange Company “Tadawul” and the Securities Depository Center Company “Edaa” announced that they had agreed to the amended short selling rules, the amended Listed Securities Lending Regulations, the amended market and center procedures, in addition to the list of terms used in the amended market rules.

The amendments to the rules regulating short selling and the regulations for lending listed securities include allowing entry into short selling activities and lending and borrowing securities for all types of investors in the market with specific conditions.

In addition to amendments related to the standards and requirements of short selling transactions and securities lending, Tadawul and Edaa aim through these amendments to develop the regulatory environment in line with the most prominent international practices in order to provide a stimulating, competitive and highly reliable environment in order to achieve the vision of both Tadawul and Edaa their goals and directions

These rules, procedures and a list of terms became effective as of March 25, 2021.

Short selling is a fairly simple concept – an investor borrows a stock, sells the stock, and then buys the stock back to return it to the lender. Short sellers bet that the price of the stock they are selling will fall. … The difference between the selling price and the purchase price is the profit.

Short selling enables good investors to identify or detect wrong or fraudulent business practices

Short selling aims to increase the level of cash liquidity because the lender is often a long-term investor, and does not rotate the shares, while short selling, it leads to the sale and purchase of these shares again, which causes an activity in the market movement.

It is considered an investment tool that is easy to reach profits, and the most important purpose of the lender in short selling is to hedge by transferring the risks of falling price of the security to the other party.