SIBOR Rise Challenges TASI at 10400
The Saudi Financial Market "TASI" experienced a modest decline of 0.1%, closing at 10,441 points after rising during the session to 10,518 points before losing those gains. Despite the drop in the index, liquidity increased by 17% to 4.25 billion riyals, though it remains 13% below the annual average. The market's decline reflects weak performance, as the number of rising stocks decreased compared to declining ones. The index is approaching its lowest levels this year, with its attractiveness waning due to rising financing costs; the three-month SAIBOR rate jumped from 5.31% to 5.5%, the highest since March 2025. This increases the debt burden on companies and puts pressure on stock valuations, especially amidst rising capital costs and narrowing profit margins.
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