Tadawul, the Saudi Stock Exchange, on Tuesday announced that previously disclosed improvements to its opening and closing price mechanism will be implemented on May 27.
Changes to the methodology for determining opening and closing prices apply to both the main market and the Nomu – Parallel Market, a statement said.
The enhancements include moving from a volume weighted average price (VWAP) to an auction method for determining closing prices.
The previous VWAP methodology for determining closing prices has been replaced by a 10-minute auction after the end of continuous trading. During this, investors determine the price of securities through participating in the auction by placing bid and ask orders.
