Saudi Stock Market Ends Lower as Tadawul Closes at 10,949 Points
Saudi Arabia’s stock market ended Wednesday on a slightly negative note, though strong corporate earnings announcements offered investors reasons for cautious optimism about underlying economic performance.
The Tadawul All Share Index fell 57.70 points, or 0.52 percent, closing at 10,949.27. The decline reflects modest selling pressure that was partially offset by gains in several key sectors. Trading remained active, with 320.9 million shares exchanging hands, representing SR6.72 billion ($1.79 billion) in total value.
Mixed Market Signals
While the main index retreated, the broader market showed competing dynamics. The parallel Nomu market advanced 0.38 percent to 22,811.84, suggesting strength in smaller-cap securities. The MT30 index, tracking the market’s largest companies, fell 0.31 percent to 1,461.56.
Among the day’s 253 active stocks, the score tilted slightly bearish with 137 declining against 116 advancing. This reflects profit-taking in some areas while investors rotated into value opportunities.
Winners and Losers on the Board
Gulf Insurance Group led gainers, surging 9.08 percent to SR27.26, followed by the Power and Water Utility Company for Jubail and Yanbu, which rose 8.46 percent to SR37.18. Arabian Mills for Food Products gained 8.13 percent to SR43.10, while technology and insurance stocks showed strength with gains exceeding 6 percent.
On the decline side, Wataniya Insurance fell 9.99 percent to SR13.33, with Allied Cooperative Insurance dropping 8.21 percent. Riyadh Cables Group declined 7.86 percent as investors moved away from industrial stocks.
Corporate Earnings Paint Brighter Picture
Despite the index decline, first-quarter results released Wednesday showed substantial earnings growth in key sectors. Elm Company, a technology and digital services leader, reported a 32.53 percent surge in first-quarter net profit to SR656 million, driven by strong growth across its digital business, outsourcing services, and professional services divisions. Revenue climbed 31.70 percent to SR2.47 billion, while earnings per share rose to SR8.43 from SR6.38 a year earlier. The stock closed up 3.28 percent at SR598.
Naqi Water Company also delivered impressive results, with net profit jumping 70.72 percent to SR6.21 million, driven by expansion in its water sector operations and retail branches. The company more than doubled its quarterly profits compared to the previous quarter, swinging from a loss to profitability. Revenue increased 16.20 percent year-on-year to SR51.68 million. Naqi’s stock closed 1.63 percent higher at SR52.85.
Looking Ahead
The earnings reports suggest that underlying corporate fundamentals remain solid, with companies benefiting from operational improvements and market expansion. The market’s mild decline appears to reflect typical profit-taking rather than fundamental concerns, particularly as economic growth in key sectors continues. Investors appear to be selectively hunting for value opportunities while taking gains on recent winners, a pattern typical of healthy, functioning markets.
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