3 Hrs
Source:
الاقتصادية
Saudi stocks face rising capital costs
The Saudi stock market, "TASI," experienced a sharp decline of 1%, closing at 10,579 points, influenced by rising capital costs that pressured stocks, especially major ones like "Aramco" and the banks. Aramco's stock fell by 1%, while "Al Rajhi" declined by 1.5% and "Al Ahli" by 1.7%. The increase in yields on Saudi 10-year debt instruments to approximately 5.96%, along with the rising cost of financing, as well as the three-month Saibor rate climbing to 5.21%, led to a decline in risk appetite and falling stock prices. Despite a 30% jump in trading value to 3.2 billion riyals, this reflects a double pressure on the market caused by higher financing costs and lower long-term yields. As a result, the drop in prices does not necessarily reflect their true value according to the discount rate.
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