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.
