On Monday, April 7, Saudi Arabia’s stock market showed resilience amidst a global market downturn, with the country’s key index, the Tadawul All Share Index (TASI), rising 0.67%, reaching 11,151.20 points.
This growth comes despite a broader sell-off in global markets, triggered by growing tensions surrounding the Trump tariffs and an escalating trade war. While international investors reacted cautiously, Saudi stocks bucked the trend and closed higher on the day.
Saudi Stock Market Shows Strength Amid Global Losses
In a stark contrast to major international indices, Saudi Arabia’s TASI made notable gains, surpassing the previous market close of 11,077.19 points.
Investors in the Kingdom of Saudi Arabia remained optimistic, seeing growth in several key sectors, even as global stock markets witnessed significant losses. Notably, indices across Asia and Europe faced substantial declines.
For instance, Hong Kong’s Hang Seng index suffered a sharp drop of over 3,000 points, while Japan’s Nikkei 225 index lost more than 2,600 points.
This performance stands as a testament to the resilience of Saudi stocks, which continue to show potential for growth despite global uncertainty. Investors focused on the Kingdom’s economy and market stability, especially in sectors like energy and technology.
Key Drivers of Saudi Stock Market Growth
One significant factor influencing Saudi Arabia’s positive performance was the government’s strategic move to cut oil prices for May.
On April 6, Saudi Arabia reduced its oil prices by $2.30 per barrel for its Asian buyers, a move that may have helped stabilize market sentiment domestically.
According to Bloomberg, this price reduction was part of a broader strategy to maintain market share and competitiveness in a volatile global environment.
Top Performing Stocks in Saudi Arabia
Several companies stood out in the Saudi stock market on April 7. The National Company for Learning and Education (NCLE), Jahez International Company for Information System Technology (JAHEZ), Etihad Etisalat Co., Dr. Sulaiman Al Habib Medical Services Group, and Yanbu Cement Co. (YCC) were among the top gainers, showcasing strong market performance despite the global market’s turbulence.
However, not all companies enjoyed the same success. Nama Chemicals Co., Batic Investments and Logistics Co., Red Sea International Co., MBC Group Co., and Raydan Food Co. were among the laggards, showing significant losses during the trading session.
The Global Market Downturn
Globally, April 7 was a tough day for investors. Asian markets faced heavy sell-offs, with Hong Kong’s Hang Seng index losing 13.22%, closing at 19,828.30 points.
Japan’s Nikkei 225 index experienced a 7.83% decline, dropping to 31,136.58 points. European markets were similarly affected, with Germany’s DAX index losing over 1,000 points, falling 3.92% to 19,828.23 points.
Meanwhile, the UK’s FTSE 100 index suffered a 5% loss, recovering slightly to a 3.83% drop at 7,746.56 points.
Despite these global challenges, Saudi Arabia’s market held firm, signaling investor confidence in the country’s economic stability and growth prospects.
