Saudi Arabia’s stock market ended a three-day losing streak on Sunday, buoyed by a rise in oil prices that provided a much-needed lift to investor sentiment. The benchmark Tadawul All Share Index (TASI) edged up 0.2%, driven by gains in oil giant Saudi Aramco (2222), which rebounded 1.5% after recent losses.
Oil Prices Spark Recovery
Oil, a key driver for the Gulf’s financial markets, saw gains on Friday, although they pulled back from session highs after U.S. President Donald Trump issued a warning of potential sanctions on Russia if it fails to negotiate a cease-fire with Ukraine. The renewed geopolitical uncertainty added volatility to the energy markets, but the overall upward movement provided a boost to Saudi stocks.
Aramco, which had been on a downward trajectory since last Tuesday, recovered some ground despite the company reporting a decline in annual profit and announcing plans to cut dividend payouts by nearly a third to $85.4 billion in 2024. The partial recovery in oil prices helped stabilize sentiment around the stock.
Economic Growth Provides Support
Saudi Arabia’s economy expanded by 1.3% year-on-year in the fourth quarter of 2024, according to preliminary government data released on Sunday. The growth was largely supported by increased non-oil and government activities, reinforcing optimism about the kingdom’s broader economic diversification efforts.
Regional Stock Market Performance
Elsewhere in the Gulf, Qatar’s benchmark index (GNRI) climbed 0.1%, helped by a 0.5% gain in Qatar Islamic Bank (QIBK).
Outside the Gulf, Egypt’s EGX30 index advanced 0.6%, fueled by a 3% jump in EFG Holding (HRHO). Analysts and bankers anticipate further foreign investment inflows into Egyptian treasuries, as last year’s IMF-backed recovery and record UAE investment helped stabilize the economy.
Key Gulf Market Movements
- Saudi Arabia (TASI): +0.2% to 11,837
- Qatar (GNRI): +0.1% to 10,526
- Egypt (EGX30): +0.6% to 31,131
- Bahrain (BHBX): -0.1% to 1,974
- Oman (MSX30): +0.6% to 4,420
- Kuwait (BKP): -1.1% to 8,569
Despite ongoing global economic uncertainties, the latest recovery in Saudi stocks reflects the resilience of the Gulf’s financial markets, supported by oil price fluctuations and economic growth indicators. Investors will be closely watching global energy trends and geopolitical developments for further market direction.
