Stock Market Closing: Saudi Principal Index Drops, finishing at 10,833
The Tadawul All Share Index in Saudi Arabia experienced a decline on Sunday, with the index decreasing by 87.17 points, or 0.80 percent, and closing at 10,833.10. This follows a mixed performance on Thursday, where the index declined by 16.44 points (0.15%), and a more significant 2.2% retreat in July.
The main reason behind this week's decline appears to be heavy selling in key large-cap stocks and overall sector weakness, as seen in recent days and July trends. Major stocks such as Saudi Basic Industries Corp. (SABIC) and Luberef (Saudi Arabian Oil Company) have been affected.
SABIC reported a net loss of SR5.28 billion for the first six months of 2025, compared to a net profit of SR2.43 billion in the same period of 2024. The decline was primarily due to impairment charges, provisions, strategic restructuring, lower results from associates, non-integral joint ventures, and a zakat expense of SR694 million in 2025. SABIC's share closed the session at SR54.45, down 1.19 percent.
Luberef, on the other hand, posted a net profit of SR446 million for the first half of 2025, down 13.2 percent year-on-year. The decline in Luberef's net profit was mainly due to lower crack margins for by-products and a decline in base oil sales volumes. Despite the decline, Luberef announced a recommendation to distribute SR168 million in cash dividends for the first half of 2025. However, the closing price for Luberef's share was not specified in the provided information.
The benchmark index's total trading turnover was SR3.39 billion ($904 million). Among the stocks that advanced, Thimar Development Holding Co.'s share price increased by 6.67 percent to SR38.68, making it the best performer in the sector. Meanwhile, Jabal Omar Development Co.'s and Dar Alarkan Real Estate Development Co.'s share prices fell 5.39 percent and 4.35 percent, respectively.
The Nomu, Saudi Arabia's parallel market, also experienced a decline, falling 169.14 points, or 0.63 percent, and closing at 26,755.84. Sport Clubs Co. was the best-performing stock of the day, with a share price increase of 9.96 percent to SR12.37. Nama Chemicals Co.'s share price rose by 5.72 percent to SR26.24.
In the broader market context, utilities and basic materials sectors have been particularly affected, with a decline across most sectors except communications and IT. This trend, coupled with the selling pressure in major stocks, has contributed to the Tadawul's downward movement in recent sessions and July's 2.18% decline.
As always, investors are advised to closely monitor market trends and company performance when making investment decisions.
Saudi Arabia's economy, as reflected in the Tadawul All Share Index, showed a decline on Sunday, mirroring a similar trend in July, with key large-cap stocks such as Saudi Basic Industries Corp. (SABIC) and Luberef being heavily affected. SABIC reported a net loss this year, while Luberef posted a decline in net profit, attributed mainly to external factors like lower crack margins and impairment charges.
In the business world, the decline appears to be due to heavy selling in key stocks and overall sector weakness. The drop in the industry and finance sectors is noteworthy, with utilities and basic materials sectors being particularly affected. Meanwhile, Thimar Development Holding Co. was the best performer in the sector, bucking the trend.
The decline in the Tadawul also extended to Saudi Arabia's parallel market, the Nomu, where Sport Clubs Co. and Nama Chemicals Co. were the best-performing stocks of the day. News agencies are reporting mixed performances across various sectors, with some sectors such as communications and IT showing growth.
Investors are advised to closely monitor market trends and company performance to make informed decisions. The decline in the Tadawul and the performance of key stocks like SABIC and Luberef are indicative of broader business and economic trends in Arabian markets. This downturn could potentially impact regional industries like art, further affecting the overall economy of the region.
The decline in Saudi Arabia's stock market could also impact the local business landscape, with potential repercussions across various sectors. Local businesses may need to reassess their strategies in the light of the current economic climate, and investors may need to exercise caution when making investment decisions.
