Saudi Arabia’s stock market kicked off the trading week on a positive note, with the Tadawul All Share Index (TASI) closing 0.22% higher at 11,836.52 points. The market movement comes as investors assess the latest fourth-quarter GDP growth figures, which indicated a 4.5% annual expansion driven by non-oil and government activities.
Market Movers: Dar Alarkan Rises, Kingdom Holding Falls
Of the traded stocks, 96 advanced while 144 declined. Dar Alarkan Real Estate Development (SASE:4300) emerged as the session’s top gainer, surging 7.48%, while Kingdom Holding (SASE:4280) saw the biggest drop, plunging 9.94%.
Saudi Arabia’s Q4 2024 GDP Growth at 4.5%
According to the General Authority for Statistics, Saudi Arabia’s GDP grew by 4.5% year over year in Q4 2024. This expansion was fueled by strong performances in non-oil sectors, including retail, finance, and hospitality.
- Wholesale and retail trade, restaurants, and hotels led the growth with a 6.4% annual increase.
- Financial services, insurance, and business services followed, expanding 5.7%.
- Electricity, gas, and water activities grew by 4.9%.
- Other mining and quarrying, transport, storage, and communication sectors recorded a 4.5% increase.
- However, crude oil and natural gas activities saw a 6.4% decline, highlighting continued challenges in the oil sector.
Al Kathiri Holding Secures SAR 82.7 Million Contract
On the corporate front, Al Kathiri Holding (SASE:3008) gained 0.43% after its subsidiary, Msandh Alemdad, won an 82.7 million Saudi riyal ($22 million) contract from National Housing Co. (NHC). The six-month project involves electromechanical and finishing works for 295 units in the Melaa Project, Jeddah.
China’s Inflation Declines, Impacting Global Markets
In global economic developments, China’s annual inflation rate fell by 0.7% in February, reversing from a 0.5% rise a year ago. Month-over-month, inflation dropped 0.2%, following a 0.7% increase previously. The deflationary trend in China could have implications for global commodity markets, including Saudi Arabia’s trade and investment outlook.
As Saudi Arabia’s economy continues its transition away from oil dependency, the latest GDP data suggests resilience in non-oil sectors despite broader global economic uncertainties. Investors will closely monitor upcoming economic indicators and corporate earnings for further market direction.
