Banking and Energy Sectors Bolster Saudi Market, Index Poised for Further Gains

An investor stands in front of a screen displaying information from the Saudi Stock Exchange (Tadawul) in Riyadh (Reuters).
An investor stands in front of a screen displaying information from the Saudi Stock Exchange (Tadawul) in Riyadh (Reuters).
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Banking and Energy Sectors Bolster Saudi Market, Index Poised for Further Gains

An investor stands in front of a screen displaying information from the Saudi Stock Exchange (Tadawul) in Riyadh (Reuters).
An investor stands in front of a screen displaying information from the Saudi Stock Exchange (Tadawul) in Riyadh (Reuters).

Strong financial results and profits from the banking sector and energy companies have fueled significant gains in the Saudi stock market during recent trading sessions.

The market index closed on Wednesday at 12,149.19 points, a slight decline of 0.36%, with trading volumes reaching SAR 6 billion. This followed a notable rise on Tuesday, when the index closed at 12,193.64 points, marking its highest level in over two months.

On Wednesday, the market saw 620 million shares traded across more than 480,000 transactions, with shares of 90 companies increasing in value, while 138 companies recorded declines.

The biggest gainers included GO Telecom, Sumou, Dallah Healthcare, Al Akaria, and Seerah, while the largest decliners were Jahez, Anaam Holding, Banan, Zamil Industrial, and ACWA Power, with price changes ranging between +3.36% and -7.16%.

The most active stocks by trading volume were Anaam Holding, Al Baha, Shams, Jahez, and Americana, while the highest by trading value were Jahez, Saudi Aramco, Al Rajhi Bank, Anaam Holding, and SABIC.

In remarks to Asharq Al-Awsat, Dr. Suleiman Al-Humaid Al-Khalidi, a financial market analyst and member of the Saudi Economic Association, said the banking and energy sectors have been critical to stabilizing the Saudi market index at the 12,000-point range.

“The banking sector in the Saudi stock market ranks among the most profitable globally and remains a major pillar of support for the index,” he said. He also highlighted the energy sector’s importance, particularly Saudi Aramco, with expectations for increased dividend payouts exceeding SAR 1.96 per share this year.

Al-Khalidi predicted that the market index would continue its upward trend over the remaining 14 trading sessions of the year, potentially reaching 12,800 points, and exceeding 13,500 points early in 2025. He added that ongoing positive economic developments would further support the market’s growth trajectory.

He pointed to robust economic indicators, including 2.8% GDP growth in Q3 of 2024 and a projected 4.8% growth in 2025. He also emphasized Saudi Arabia’s ambitious SAR 1.1 trillion budget and SAR 1.2 trillion expenditures, crediting government fiscal policies for creating an attractive environment for economic growth and investment.

Saudi Arabia has also become a global hub for economic, tourism, and investment activities, with the current market investment value reaching approximately $400 billion, aligned with the nation’s goal of $3 trillion in market investments.

For his part, financial market expert Ubaid Al-Muqati highlighted the growing interest in the Saudi stock market among both local and international investors, driven by the strength of the Saudi economy and strong corporate profitability.

He noted that the accumulation of value at lower price levels has stimulated activity in the TASI index, fostering daily speculative trading and generating steady returns. These gains, in turn, create periodic price peaks and troughs for stocks.

Al-Muqati explained that the market operates in cyclical waves, with both upward and downward movements. Over the past two months, the index corrected from a peak of 12,390 points to a support level of 11,590 points, losing approximately 1,000 points in the process. However, the index has since regained these points during the last 10 trading sessions.



Lebanon's New Central Bank Chief Vows to Fight Money Laundering

Lebanon's newly appointed central bank governor Karim Souaid speaks during a handover ceremony in Beirut on April 4, 2025. (Photo by ANWAR AMRO / AFP)
Lebanon's newly appointed central bank governor Karim Souaid speaks during a handover ceremony in Beirut on April 4, 2025. (Photo by ANWAR AMRO / AFP)
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Lebanon's New Central Bank Chief Vows to Fight Money Laundering

Lebanon's newly appointed central bank governor Karim Souaid speaks during a handover ceremony in Beirut on April 4, 2025. (Photo by ANWAR AMRO / AFP)
Lebanon's newly appointed central bank governor Karim Souaid speaks during a handover ceremony in Beirut on April 4, 2025. (Photo by ANWAR AMRO / AFP)

Lebanon’s new central bank governor vowed Friday that the institution will fight money laundering and the financing of terrorism and will work independently away from political intervention.
Karim Souaid, who was speaking after officially taking office in Beirut, added that he will work on restructuring the banking sector, public debt and returning money to depositors, The Associated Press reported.
Lebanon’s economy has been witnessing its worst crisis in its modern history since 2019 and the state must implement reforms demanded by the international community. Such reforms are needed to unlock international aid, and on top of that, Israel’s 14-month war with Hezbollah that caused what the World Bank estimates was $11 billion in damages and economic losses.

Since the historic meltdown began Lebanon has been running on a cash economy and in October, the Paris-based Financial Action Task Force, or FATF, an international anti-money laundering watchdog, placed Lebanon on its “grey list.”
“We will work on implementing international laws on top of them combating money laundering and supporting terrorism,” Souaid said.

The former asset manager added that banks in Lebanon should recapitalize by pumping new money and those that cannot and don’t want to can merge with other lenders. He said that the priority will be to return deposits starting with people who have small accounts. He said the return of deposits should be the responsibility of the banks, central bank and the state.

Souaid said the central bank will study all economic recovery plans put forward by previous governments to help the small nation get out of the crisis.

Souaid also pledged to safeguard the central bank's independence from political pressure and prevent conflicts of interest.
"I will ensure that this national institution remains independent in its decision-making, shielded from interference, and grounded in the core principles of transparency and integrity," he said.

Wassim Mansouri, who had been acting central bank governor since July 2023, said the central bank’s reserves stood at 10.727 billion at the end of March.

Souaid succeeds Riad Salameh, the embattled former governor of 30 years whose term ended with several international corruption cases lodged against him and for embezzlement and other financial crimes.