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.



Oil Prices Ease on Rising US Inventories, Libyan Output

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown)
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Oil Prices Ease on Rising US Inventories, Libyan Output

FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown)
FILE - Pump jacks extract oil from beneath the ground in North Dakota, May 19, 2021. (AP Photo/Matthew Brown)

Oil prices slid on Wednesday, giving up some of last session's gains, as an increase in US crude stockpiles and easing worries over Libyan supplies weighed on prices, although the decline was limited by potential US tariffs on Canadian and Mexican imports.

Brent crude futures fell 18 cents, or 0.2%, to $77.31 a barrel by 0548 GMT, while US crude futures declined 15 cents, or 0.2%, at $73.62 a barrel, Reuters reported.

"While markets are tackling demand side pressures, easing backdrop on supply side is equally weighing over oil prices," said Priyanka Sachdeva, senior market analyst at Phillip Nova in Singapore.

"Markets are under pressure with Trump's plans to boost US oil production and await further clarity on Trump's energy policies."

US President Donald Trump began his term last week issuing several executive orders to ease the permitting of energy infrastructure and boost already record-high oil and gas output.

US crude oil and gasoline stocks rose last week, while distillate inventories fell, market sources said on Tuesday, citing American Petroleum Institute figures.

The Energy Information Administration (EIA), the statistical arm of the US Department of Energy, is due to release its weekly data at 1530 GMT on Wednesday.

The resolution of supply concerns in Libya has also added to selling pressure, said Chiyoki Chen, chief analyst at Sunward Trading in Tokyo.

Those fears eased after the state-run National Oil Corp said on Tuesday export activity was running normally after it held talks with protesters demanding a halt of loadings at one its main oil ports.

The White House said on Tuesday that President Trump still plans to issue 25% tariffs on Canada and Mexico on Saturday.

It remains unclear how any new tariffs could affect oil imports to the US from the countries. Canada supplied 3.9 million barrels per day of oil to the US in 2023, roughly half of overall imports for the year, while Mexico supplied 733,000 bpd, according to data from the EIA.

Oil benchmarks fell to multi-week lows early this week as news of surging interest in Chinese startup DeepSeek's low-cost artificial intelligence (AI) model prompted concerns over energy demand to power data centers, rattling the overall energy sector, while weak economic data from China further soured the demand outlook.

Technology stocks regained ground on Tuesday, a day after the DeepSeek rattled markets.