The Saudi stock market extended its upward trajectory on Wednesday, with the Tadawul All Share Index (TASI) closing at 11,260 points. This represents a gain of 28 points, or 0.3 percent, from Tuesday’s close of 11,232 points. The closing level marks the highest finish for the benchmark index in over four months, signaling sustained investor confidence despite a modest reduction in daily liquidity.
Trading activity recorded a total value of approximately 5.7 billion riyals ($1.52 billion), a decrease of roughly 400 million riyals compared to the previous session’s 6.1 billion riyals. Although liquidity tightened slightly, the market maintained its positive momentum, keeping the index above the 11,200-point threshold for the second consecutive day. Intraday movements saw TASI fluctuate between a low of 11,209 points and a high of 11,286 points before settling near the upper end of its range.
The rally was underpinned by strong performance in leading stocks, particularly within the banking, telecommunications, and basic materials sectors. Analysts noted that the breadth of gains across these key industries provided a more balanced foundation for the current uptrend, rather than relying on isolated stock movements. Khaled Al-Dossary, an investment consultant, highlighted that while global markets remain cautious ahead of Nvidia’s earnings results and US inflation data, the Saudi market continues to show resilience. He pointed out that lower oil prices, which recently pressured energy stocks, may simultaneously ease inflation expectations globally, potentially benefiting banks and real estate sectors if risk appetite improves.
Specific corporate performances reflected this mixed but generally positive sentiment. Al Rajhi Bank rose by one percent to close at 43.40 riyals, joining other major gainers such as Alinma Bank, United Telecom, Ma’aden, Almarai, Dar Al Arkan, STC, PSAV, Bank Albilad, and Riyad Bank, which all posted increases ranging from one to four percent. Conversely, some stocks experienced profit-taking after recent rallies. MI Solutions dropped three percent to 311.40 riyals, retreating from an intraday high of 338 riyals as investors locked in gains. Similarly, ACWA Power closed down 0.3 percent at 196.80 riyals following the ex-dividend date, a technical adjustment rather than a fundamental downturn.
In the broader Gulf region, markets showed varied results. The Kuwait Stock Exchange saw its general index fall by 0.08 percent to 8,894.37 points, while the main market index rose 0.48 percent. Trading volumes in Kuwait totaled 88.7 million dinars. Meanwhile, the Qatar Exchange surged by 0.71 percent, closing at 9,854.1 points with a turnover of 330.2 million riyals. Thirty-three companies saw their shares rise, while only twelve declined. In Bahrain, the general index dipped by 3.86 points to 1,943.21, weighed down by declines in the telecommunications and financial sectors.
Looking ahead, analysts suggest that the next critical resistance level for TASI is the 11,300-point mark. The sustainability of the current rally will depend on whether local liquidity continues to flow into leading stocks and if participation broadens further across different sectors. While geopolitical tensions regarding the Strait of Hormuz have receded somewhat, contributing to a drop in Brent crude to around $85.9 per barrel, the domestic market remains focused on internal sector rotation and global macroeconomic indicators.
This story was produced in the newsroom from the disclosed sources named above.
