Abstract
Abstract The indicator is a numeric value used in measurement of changes happens in the capital market as well as stock markets. There are many advantages for the indicator such as it is used to summarize the total market performance if it is expression in honesty level about all items in building it. Value method is regarded as one of the most potential methods in constructing indicators. Several international and Arab financial markets have been demonstrated. Saudi Arabia is amongst the Arab world financial markets as to have huge value assets (Riyadh Stock Market). The research quests, however, for the possibility that the indicator may reflect the market performance, then the current economic situation in the country. The study has been delineated in terms of two aspects: First: the conceptual one is a group of concepts on the indicator, usage and the way that the construction has been furcated. Additionally, the international indicators were taken in this context. The conceptual one has recreated a facility for the analytical (Second) aspect. Daily and monthly issued data by financial market periodically for year 2006 and on web site were managed. On this basis, aspects have been tested on the research problem. Consequently, the research concluded a group of results that the indicator reflects on market situation and the economic performance, because there is a vast variance on the sector level, as well as the rate of company’s shareholding in the gross market values that may drastically be postulated in constructing the indicator. .
