Saudi Stocks and Bonds Show Limited Recovery
The overall picture of the Saudi financial market shows a temporary halt to a decline that had persisted for three sessions, with the Tadawul Index rising slightly by 0.1% to reach 10,878 points. This gain was supported by an increase in the share price of Al Rajhi Bank following the announcement of record dividends. However, the majority of stocks remained under pressure due to the rise in bond yields. The current market movement reflects a temporary stabilization with a gradual easing of selling pressures, but the market continues to approach with caution amid rising capital costs—particularly as valuations approach sensitive levels and bond yields reduce the margin of safety. It is expected that the movements in long-term yields in the upcoming period will shape the landscape of equilibrium, as rising yields impact the discounting of stock valuations, highlighting the market’s sensitivity to yield changes and maintaining the possibility of continued volatility without a confirmed start to a strong rally.
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