Positive Outlook for Saudi Stock Market Next Week

A trader monitors the screen at the Saudi Exchange in Riyadh. (AFP)
A trader monitors the screen at the Saudi Exchange in Riyadh. (AFP)
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Positive Outlook for Saudi Stock Market Next Week

A trader monitors the screen at the Saudi Exchange in Riyadh. (AFP)
A trader monitors the screen at the Saudi Exchange in Riyadh. (AFP)

Saudi Arabia’s Tadawul All Share Index (TASI) ended the second week of March with a slight decline for the third consecutive week, closing down 0.73% at 11,725.88 points, compared to the previous week's close of 11,811.11 points.

In an analysis of the market performance during the week ending March 13, Dr. Suleiman Al-Humaid Al-Khalidi, a financial market analyst, told Asharq Al-Awsat that the market experienced a sharp decline not seen in years, coinciding with a drop in global markets, particularly in the US, where $2 trillion in value was wiped out in a single day.

This accounted for roughly 60% of the total market value of the Saudi stock market.

Al-Khalidi noted that the key player in the Saudi market is the banking sector, especially Al-Rajhi Bank's shares, which showed resilience and did not follow the downward trend. This was attributed to the strong profits reported by the banking sector in 2024.

The primary factors contributing to the market’s decline include global economic pressures, particularly US tariffs on most global economies, ongoing global uncertainty, and the Federal Reserve's tight monetary policies, he explained.

These factors have significantly impacted liquidity flows into financial markets. Additionally, fluctuations in global oil prices, despite recent stability, have also played a role.

This downturn has been accompanied by caution among sovereign wealth funds, investment institutions, and some portfolios in injecting new liquidity or altering their positions until there is more clarity in the financial markets, he went on to say.

Moreover, Al-Khalidi said that the Saudi stock market has not accurately reflected the true strength and size of the Saudi economy, which has grown to SAR 4 trillion, up from SAR 600 billion in 2016, before the launch of Vision 2030.

Additionally, the country’s GDP has reached approximately $1.1 trillion.

Looking ahead to the market's performance in the coming week, he noted that there are strong support levels at 11,550 points, followed by 11,450 points.

These levels could help shift the market toward an upward trajectory and better reflect the robust growth of the Saudi economy.

Al-Khalidi emphasized that the banking and energy sectors could play a leading role in driving the market higher, pushing the index beyond this week’s closing levels.

He also pointed out that some stocks are hitting new lows, presenting significant investment opportunities for those seeking safe havens with steady returns in the Saudi market.



Peru's Economy Grows 4.07% Year-on-year in January

A worker walks pasts the logo of the Central Reserve Bank of Peru (BCRP) inside its headquarters building in Lima, Peru June 16, 2017. REUTERS/Mariana Bazo/File Photo
A worker walks pasts the logo of the Central Reserve Bank of Peru (BCRP) inside its headquarters building in Lima, Peru June 16, 2017. REUTERS/Mariana Bazo/File Photo
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Peru's Economy Grows 4.07% Year-on-year in January

A worker walks pasts the logo of the Central Reserve Bank of Peru (BCRP) inside its headquarters building in Lima, Peru June 16, 2017. REUTERS/Mariana Bazo/File Photo
A worker walks pasts the logo of the Central Reserve Bank of Peru (BCRP) inside its headquarters building in Lima, Peru June 16, 2017. REUTERS/Mariana Bazo/File Photo

Peru's economy grew 4.07% in the first month of 2025, data from the nation's INEI statistics agency showed on Saturday, in line with central bank and analysts' forecasts, as nearly all sectors logged growth with the exception of the financial sector.

The January data landed a touch above the 4% estimate of analysts polled by Reuters, but below the 4.85% recorded in last month of last year.

The Andean nation's key mining and energy sector advanced 1.4%, while farming and the smaller fishing sector advanced 3.2% and 23.5% respectively.

Manufacturing industry expanded by 5.5% and transportation up 7.9%, while public administration and defense and construction both logged growth of over 4%.

The financial sector contracted 0.35% as commercial banks issued fewer loans.

In a call on Friday, the top economist at Peru's central bank had said that economic activity was developing better than expected, as the economy bounced back from a recession it entered in 2023.

The bank predicted a limited impact from US tariffs, saying Peru's agricultural produce complemented North American supplies when they are not able to produce locally for seasonal reasons, and copper exports can be sold to many other markets.

Late last month, Peru's economy minister predicted the economy would expand 4% this year - up from 3.3% growth in 2024 and a 0.4% contraction a year earlier - ranking it among the fastest-growing economies in Latin America.