The prospects for the Saudi stock market remain strong in the medium term due to robust national growth and strong corporate profitability, top economists and traders said as the Tadawul All-Share Index (TASI) rose to a five-year high on Thursday.
The index climbed 74 points or 0.9 percent to 8,263 points, its highest level since September 2008.
“At current prices, the market is fairly valued so any upside will have to be carefully examined in terms of sustainability and liquidity,” John Sfakianakis, chief investment strategist at Masic in Saudi Arabia, told Arab News.
Faisal Alsayrafi, president of Financial Transaction House, said: "Investors are returning to the Saudi market because the fundamentals are very strong compared to other regional markets.”
He also said the available liquidity “is very high”.
Alsayrafi added: There is an increase of 60 to 65 percent in liquidity this year compared to last year.”
He said SABIC’s movements weighed on the main index. Saudi Basic Industries Corp. (SABIC) added 0.7 percent on Thursday.
He said: “SABIC shares were fluctuating in a narrow range for sometime. Now SABIC shares are showing some positive upward trend.”
Any increase in US stock markets also bodes well for the Saudi exchange, he told Arab News.
US stocks pulled back on Thursday from Wednesday’s record levels.
According to Reuters, the key Saudi index will have to post two consecutive gains above the previous peak of 8,223 points — hit in August this year — to confirm a breakout.
Commenting further on Thursday’s Tadawul peformance, Sfakianakis said: “With a 21 percent year-to-date performance, the Saudi market has largely achieved a valuation to catch up with its historical average ranges.”
Basil Al-Ghalayini, CEO of BMG Financial Group, said the physiological effect of Twitter’s debut floatation also contributed to positive market sentiment here.
Several factors have made a positive impact on investors’ confidence in Tadawul, he said. The recent announcement about two new IPOs in the Saudi market planned before the year-end and US Secretary of State John Kerry’s recent visit to Riyadh to restore the longstanding US-Saudi relationship also boosted market sentiment, he said.
The availability of liquidity in the hands of investors is adding strength to the market, said the CEO.
Banking shares index rose 1.1 percent on Thursday and the petrochemical index climbed 0.6 percent. Together, the two sectors make up 65 percent of the market’s total value.
Al-Rajhi Bank added 1.7 percent.
Saudi Telecom Co. surged 6.4 percent to a four-and-half-year high. The firm last month posted a surge in earnings and beat forecasts, Reuters reported.
At the end of last month, TASI closed at a level of 8,044.47. It gained 79.56 points (1 percent) over the close of the previous month.
On an YTD basis, TASI registered a positive increase of 18.28 percent (1,243.25 points). The highest close level for the index during October was 8,170.75. This was achieved on Oct. 24.
Blue chips drive Tadawul index to fresh record
Blue chips drive Tadawul index to fresh record
Saudi POS spending opens 2026 with a 31% surge: SAMA
RIYADH: Saudi Arabia’s total point-of-sale transactions reached SR17 billion ($4.5 billion) in the week ending Jan. 3, with all sectors recording positive weekly growth.
According to the latest data from the Saudi Central Bank, the total POS value represented a 30.6 percent week-on-week increase, while the number of transactions rose 15.7 percent to 255.36 million.
Spending on freight transport, postal and courier services recorded the sharpest increase, surging 110.9 percent to SR74.22 million, followed by education, which rose 66.4 percent to SR235.51 million.
Expenditure on personal care increased by 31.7 percent, while spending on books and stationery rose 36 percent. Jewelry outlays climbed 48 percent to SR544.12 million.
Further gains were recorded across other categories. Spending at pharmacies on medical supplies rose 42.1 percent to SR284.81 million, while expenditure on medical services increased 20.8 percent to SR556.27 million.
The food and beverages sector saw outlays rise 41.4 percent to SR2.7 billion, accounting for the largest share of POS transactions.
Restaurants and cafes followed with a 20.9 percent increase to SR1.9 billion, while apparel and clothing spending rose 30 percent to SR1.6 billion, ranking third.
Together, the top three categories accounted for approximately 36.53 percent of total POS spending, or SR6.22 billion.
Saudi Arabia’s major urban centers mirrored the national surge.
Riyadh, which accounted for the largest share of POS spending, saw a 21 percent increase to SR5.61 billion, up from SR4.63 billion the previous week.
The number of transactions in the capital rose 12.2 percent to 79.6 million.
In Jeddah, transaction values increased 25.6 percent to SR2.24 billion, while Dammam posted a 26.1 percent rise to SR831.93 million.
POS data, tracked weekly by SAMA, provides an indicator of consumer spending trends and the ongoing growth of digital payments in Saudi Arabia.
The data also highlights the expanding reach of POS infrastructure, extending beyond major retail hubs to smaller cities and service sectors, supporting broader digital inclusion initiatives.
The growth of digital payment technologies aligns with Saudi Arabia’s Vision 2030 objectives, promoting electronic transactions and contributing to the Kingdom’s broader digital economy.
