Foreign investors bought 2.33 per cent of all shares purchased on Saudi Arabia's stock market in June, the first month since new rules allowed more overseas investment in the Arab world's largest bourse, data showed on Thursday.

Overseas investors, including residents and holders of swaps and qualified foreign investment licences, purchased SR2.63 billion ($701.4 million) of shares.

They sold SR3.57 billion of shares during the same period, or 3.16 per cent of total shares sold.

That compared with May when foreigners purchased SR1.35 billion of shares, accounting for 0.83 per cent of total shares bought.

The same month, they sold SR1.29 billion in shares, or 0.80 per cent of total shares sold. The transactions were made solely through swaps that month.

The exchange opened its doors to foreigners to invest directly into shares on June 15, a move fund managers believe will lead to tens of billions of dollars eventually flowing into the market.

But the data showed Saudi investors still dominate trading. They bought SR107.78 billion of shares during June, equating to 95.55 per cent of the total. Saudis sold 107.43 billion of shares, or 95.24 per cent of those sold.

Gulf Cooperation Council investors bought 2.40 billion shares, or 2.12 per cent of the total, and sold SR1.81 billion, equating to 1.60 per cent of the total.

The total value of shares traded for the month reached SR112.81 billion, decreasing by 30.54 per cent from the previous month, the data showed.

The holy month of Ramadan begun in June, a period where trading volumes in the Muslim world traditionally slow as working hours are reduced. - Reuters