RIYADH: Saudi Arabia’s Purchasing Managers’ Index (PMI) edged lower last month as new orders contracted.
Saudi PMI fell to 51.4 in April from 52.8 in March, which represents the lowest reading since the series began in August 2009.
The PMI report from the UAE’s largest bank, Emirates NBD (ENBD), showed that the Kingdom’s new orders weakened in April.
According to ENBD, firms blamed “subdued market demand, competitive pressures and unpredictable economic conditions” for the decline.
Still, employment increased ‘modestly’ in April, despite the weakness in new orders.
Despite the overall weakness of April’s survey, future expectations remained high, with around 43 percent of firms expecting their output to be higher in a year’s time.
“The average PMI for Saudi Arabia year-to-date is 52.6. This is well below the average for 2017 of 56.1, and also much lower than the long-run series average of 57.9,” said Khatija Haque, head of MENA research at Emirates NBD.
“That non-oil private sector activity has slowed so sharply this year is surprising to us, particularly when we consider the expansionary budget that was announced for 2018 to support growth in the non-oil sectors and the unexpectedly high oil price year-to-date, which usually drives stronger non-oil sector activity,” Haque added.
ENBD said the “softer than expected” PMI data year-to-date raises the downside risks to its 2.5 percent Saudi GDP growth forecast for 2018.
Saudi Arabia PMI edges lower in April but employment ticks up
Saudi Arabia PMI edges lower in April but employment ticks up
Closing Bell: Saudi main market sheds 85 points to finish at 11,098
RIYADH: Saudi Arabia’s Tadawul All Share Index closed lower in the latest session, falling 85.79 points, or 0.77 percent, to finish at 11,098.06.
The MSCI Tadawul 30 Index declined 0.63 percent to close at 1,495.23, while the parallel market index Nomu dropped 0.91 percent to 23,548.56.
Market breadth was firmly negative, with 42 gainers against 218 decliners on the main market. Trading activity saw 226 million shares exchanged, with total turnover reaching SR4.5 billion ($1.19 billion).
Among the session’s gainers, Tourism Enterprise Co. rose 9.40 percent to SR15.02. SHL Finance Co. advanced 4.51 percent to SR16.00, while Almasar Alshamil for Education Co. gained 3.56 percent to SR23.88.
Dar Alarkan Real Estate Development Co. added 3.03 percent to SR19.70, and Banque Saudi Fransi climbed 2.61 percent to SR19.30.
On the losing side, Almasane Alkobra Mining Co. recorded the steepest decline, falling 6.61 percent to SR96.
Al Moammar Information Systems Co. dropped 5.14 percent to SR164.20, while National Company for Learning and Education declined 4.60 percent to SR124.30. Saudi Ceramic Co. slipped 4.14 percent to SR27.30, and Arabian Contracting Services Co. fell 4.12 percent to SR116.50.
On the announcement front, Saudi Telecom Co. announced the distribution of interim cash dividends for the fourth quarter of 2025 in line with its approved dividend policy.
The company will distribute SR2.74 billion, equivalent to SR0.55 per share, to shareholders for the quarter.
The number of shares eligible for dividends stands at approximately 4.99 billion shares. The eligibility date has been set for Feb. 23, with distribution scheduled for March 12.
The company noted that treasury shares are not entitled to dividends and that payments will be made through Riyad Bank via direct transfer to shareholders’ bank accounts. stc shares last traded at SR44.80, unchanged on the session.
Separately, National Environmental Recycling Co., known as Tadweer, reported its annual financial results for the year ended Dec. 31, 2025, posting significant growth in revenue and profit.
Revenue rose 53.5 percent year on year to SR1.24 billion, compared with SR806 million in the previous year. Net profit attributable to shareholders increased 68.4 percent to SR60.9 million, up from SR36.2 million a year earlier, driven by higher sales volumes and operational expansion.
Tadweer shares last traded at SR3.80, up 2.70 percent.
