24 Hrs
Source:
الاقتصادية
Tasi’s Best Day in Two Weeks
The Saudi stock market experienced a significant increase today, with the TASI index recording its fastest rise in nearly two weeks. This was driven by gains across most companies and sectors, with strong leadership from Aramco, which rose by 2%. Support also came from companies such as Al-Ahli, Acwa Power, SABIC, and Al-Rajhi. A total of 19 out of 22 sectors advanced, with the Media and Entertainment sector leading the gainers, followed by Energy and Home & Personal Products sectors. Although the index increased by 0.8%, closing at 10,190 points, market liquidity was weaker than usual, with trading volume amounting to 2.35 billion riyals—about one-third of the average, indicating improved market participation but not a significant inflow of funds. The market remains 6.7% below its 200-day moving average, with valuations still relatively low, as the forward Price-to-Earnings ratio decreased to 13.9 times. Additionally, the yield on the 10-year U.S. Treasury bonds declined to 5.10%. Currently, the focus remains on companies' ability to sustain their profits, as continued gains depend on corporate earnings results and expectations for future profits. This is especially relevant given the potential return of long-term yields to higher levels, which could limit the expansion of valuation multiples unless earnings results improve or expectations are revised upward.
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