Riyadh, Saudi Arabia – On Sunday, March 2, 2025, the Saudi Arabian stock market experienced a downturn as the Tadawul All Share Index (TASI) fell by 0.63%, closing at 12,035.45 points. This decline reflects a broader trend of mixed performances across various sectors and companies within the Kingdom’s financial markets. Investors appeared cautious, reacting to both domestic factors and international developments that might influence the market’s direction in the coming weeks.
Market Overview
The day’s trading volume reached approximately SR3.45 billion ($922 million), with 37 stocks advancing and 209 declining. This widespread decline indicates a cautious sentiment among investors, possibly influenced by ongoing uncertainties in global markets, fluctuations in oil prices, and geopolitical tensions in the region. As investors weigh these factors, the Tadawul’s performance serves as a significant indicator of confidence in Saudi Arabia’s economic outlook.
The decline was notably led by sectors such as transportation, media, and consumer durables, which collectively pulled the index lower. Meanwhile, the energy and banking sectors showed relative stability, providing some support to the market. Analysts suggest that concerns about potential interest rate adjustments by central banks globally, combined with profit-taking activities, contributed to the negative sentiment.
Top Gainers
Despite the overall market downturn, several companies managed to post gains, highlighting that select opportunities still exist for investors even in a bearish environment:
- Saudi Cable Co.: The company’s share price surged by 5.79%, closing at SR131.60. This marks a significant rebound, positioning it among the top performers of the day. Analysts attributed the gain to investor optimism about the company’s restructuring efforts and potential new contracts.
- Elm Co.: Shares of Elm Co. rose by 4.24%, ending the session at SR1,110. The company’s positive performance was driven by expectations of strong quarterly results and its growing portfolio of digital services, which align with the Kingdom’s Vision 2030 strategy.
- Middle East Pharmaceutical Industries Co.: This firm’s stock saw a 1.96% increase, closing at SR135.40. The gain is seen as a response to recent announcements about expanding production capabilities and tapping into new export markets, which could bolster revenues.
Notable Decliners
Conversely, several companies experienced significant declines:
- SAL Saudi Logistics Services Co.: The company’s shares dropped by 9.98%, closing at SR220.20. This substantial decrease made it the day’s most significant loser. Market analysts suggest that the decline could be linked to concerns about rising operational costs and potential impacts from shifts in global supply chains.
- Batic Investments and Logistics Co.: Shares fell by 9.76%, ending at SR3.05, indicating challenges within the logistics sector. Analysts believe that uncertainty over infrastructure investments and higher borrowing costs may have weighed on investor sentiment.
- Al-Baha Investment and Development Co.: The company’s stock decreased by 7.32%, closing at SR0.38, reflecting investor concerns about its financial health and limited revenue growth. The decline also highlights the pressures facing smaller firms amid broader market volatility.
Corporate Earnings Highlights
Several companies released their annual financial results, shedding light on their performance over the past year:
- Saudi Tadawul Group Holding Co.: The company reported a net profit of SR621.8 million for the year ending December 31, 2024, marking a 59.4% increase compared to the previous year. This growth was driven by a 34.8% rise in operating revenues and a 50.3% increase in gross profit. Despite this positive performance, the company’s shares edged down 0.47%, closing at SR213. Analysts suggest that profit-taking activities may have contributed to the minor decline.
- Retal Urban Development Co.: The firm posted a net profit of SR266.12 million for 2024, a 31.51% increase from the prior year. This growth is attributed to a 32% rise in gross profit and a surge in equity-accounted investment results. The company’s shares saw a modest increase of 0.25%, ending at SR16.06. Investors remain optimistic about the company’s expansion plans in the housing and infrastructure sectors.
- Al-Rajhi Co. for Cooperative Insurance: The company reported a net profit of SR332.3 million for 2024, reflecting a 1.3% increase compared to 2023. This uptick is linked to higher insurance service results before Re-takaful and a decrease in insurance service results for the year. Shares closed at SR165, down 2.04%, possibly due to concerns about regulatory changes impacting the insurance industry.
Saudi Arabia and Muslim Nations Welcome Ramadan 2025 Amidst Diverse CircumstancesSector Performance
The market’s decline was influenced by underperformance in several sectors:
- Transportation: Companies within this sector faced challenges, possibly due to rising fuel costs and uncertainties about global trade routes. The impact was most pronounced among logistics and shipping firms.
- Media: The media sector also saw declines, reflecting shifting investor sentiments. This could be linked to concerns about advertising revenues and competition from digital platforms.
- Consumer Durables & Apparel: This sector experienced losses, indicating potential concerns about consumer spending and demand. Inflationary pressures and higher import costs could be weighing on this segment.
Economic Outlook
Looking ahead, Saudi Arabia’s economy is projected to face external risks in 2025. However, forecasts suggest that the Kingdom’s real non-oil GDP is expected to grow by 4.4%, while oil GDP is anticipated to rise by 2.6%. These projections underscore the government’s ongoing efforts to diversify the economy and reduce dependence on oil revenues. Analysts note that infrastructure investments, particularly in tourism and technology sectors, could play a pivotal role in achieving these targets.
Additionally, the upcoming release of the Riyad Bank Purchasing Managers’ Index (PMI) for February will provide further insights into the health of the non-oil private sector. A higher PMI indicates expansion, while a lower figure suggests contraction. The PMI data is closely watched by investors as a gauge of business confidence and economic momentum.
Global Influences
Global economic indicators also play a role in shaping investor sentiment:
- Eurozone Inflation Data: The release of the eurozone’s flash inflation rate data could influence global markets, including Saudi Arabia’s, as investors assess potential impacts on international trade and monetary policies. Higher inflation rates might prompt more aggressive monetary tightening by central banks, which could impact capital flows and risk appetite.
- China’s Trade Figures: China’s export and import numbers for January-February are due later this week. Given China’s position as a major trading partner, these figures could have implications for Saudi Arabia’s trade dynamics and economic outlook. Any signs of slowdown in China’s economy might affect oil demand projections, adding another layer of complexity to the market.
Conclusion
The Tadawul All Share Index’s decline reflects a complex interplay of corporate performances, sector challenges, and broader economic factors. As investors await key economic data and monitor global developments, caution is likely to persist. For now, the focus remains on navigating the volatility with a careful eye on both domestic policies and international market signals.
Saudi Arabia and Muslim Nations Welcome Ramadan 2025 Amidst Diverse Circumstances
