7 Hrs
Source:
الاقتصادية
Saudi stocks may reassess profits
After the conclusion of the Saudi companies' second-quarter 2026 earnings season, which recorded record profits of approximately 49 billion SAR (a 25% year-on-year increase) and total consolidated profits reaching about 170.5 billion SAR (a 37% annual growth), the Saudi stock market "TASI" did not show momentum supporting a larger rise. The index closed at 10,824 points, up a modest 0.1%, marking its lowest weekly gain since late January, failing to break through the 10,910-point level, and the trading range remained narrow. Despite these record profits, the market did not reflect this in purchasing activity, as stock valuations fell below levels seen over the past three years (with a price-to-earnings ratio of around 14.2). However, investors are demanding clearer indicators of sustainable growth, especially since profits from some companies like "Petro Rabigh" and "Al Bahri" were driven by exceptional circumstances that may not recur. Liquidity also declined, and trading activity slowed, reflecting a balance between investor anticipation and valuations. Markets are now testing the proximity of the 10,750-point level, where demand performance and a rebound in banking and leading stocks will interpret whether new investors will be attracted in the coming weeks.
Size: 120%Text Size
Notice: This Is an AI-Generated Summary
Comments (0)