8 Hrs
Source:
الاقتصادية
TASI remains focused on earnings season
The Saudi stock market began its performance in the third quarter earnings season, with investors focusing on companies' ability to achieve profits exceeding expectations and compensate for rising capital costs. The Tadawul index declined by 1.9%, closing at 10,393 points, with the price-to-earnings ratio dropping to around 13.9 times. However, the high yields of government sukuks (approximately 6.09%) are putting pressure on market attractiveness, as higher fixed income returns reduce the incentives for investing in stocks. Investors anticipate that their main concerns will revolve around companies’ capacity to protect their profits, deliver revenue growth, and absorb increasing financing costs, with a significant emphasis on future outlooks. Strong results could support the market even as alternative yields rise, while results meeting or falling short of expectations may continue to exert downward pressure on prices—especially if they do not signal improved growth prospects or future margins.
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