Why didn't the Saudi stock market respond to high oil prices?

The improvement of oil prices did not contribute to supporting the Saudi stock market, awaiting incentives to get out of its narrow cross range, amid calm in trading and sales pressure on some stocks. The transverse movements of the index, which has only earned 72 points since the beginning of the year, have created an important resistance level near 12100 points. Consequently, “If more stimulating data does not seem to investors, the market may find it difficult to overcome these levels soon,” according to Ahmed al -race, the first financial analyst for the newspaper “Al -iqtisadiah”, in an interview with “Al -Sharq”. Brent oil rose by more than 5% during the previous two sessions, and today completed about $ 81 a barrel. However, the response of stock markets was limited to this height, and Aramco’s share almost changed during this week’s sessions. The market seems to be awaiting the assurance of the continuation of oil prices and the rise of new estimates of its path this year. For several months, the consensus in the global oil market indicated that the year 2025 would be characterized by large surplus and determined to weak. But suddenly, and after the most serious US sanction package against the energy industry in Russia, expectations have become more complicated. The sanctions – revealed less than two weeks before President Donald Trump held office – targeted senior producers and insurance companies, as well as dozens of tankers used to transport consignments around the world. The continued rise of oil with the tightening of the sanctions against Russian oil can affect the arrow of “Aramco”, the largest weight in the “Tassi” index, and the market can come from the existing cross -lane, according to Rashid. Abdullah Al -hamid, head of investment consultations at ‘Gib Capital’, said in his conversation with ‘Al Sarq’ the oil prices had a positive impact on the general effects of General on General General General at General. Economics, of which the stock exchange is directly affected by the oil interactions. “Saudi Arabian Mining” enterprise (Maaden), after announcing yesterday not to continue an agreement to integrate aluminum units with the “Aluminum Bahrain” business (Alba), without announcing the reason not to cancel the agreement. Mary Salem described the cancellation of the agreement as “It was surprising because the two companies announced the extension of negotiations until April at the end of December, but it probably differed from the judgments.” The ‘Maaden’ share fell 1.77% by the end of yesterday’s trading, with 47.15 Riyals. While Alba’s share was about 10%. At the same time, traders will keep the share of “Sinomi Retil”, after the collapse of negotiations on a possible agreement that includes the merger between a number of commercial fashion agencies, as the company announced yesterday, and explains that he is currently studying other strategic options that include the possibility of an agreement with a strategic investor. Sinomi Retel fell at the end of Monday’s trade, with 5.6% to 14.6 Riyals. Al -siyadi completes the market agreement “returns” that will put the share of the “Saudi insurance company” (reinvestment) under the microscope, after the public investment fund has completed the acquisition of 23% of its shares, according to the announcement of yesterday on the “Tadawul” website. The shares of the company have subjected to profits, after profits over 145% since the announcement of the investment of the Saudi Sovereign Fund in the middle of this year until the end of the trading last week. At the end of a trade session on Monday, shares fell 0.5% to 60.2 Riyals. Isaac Ali, head of the assets and consultation division in Winfston Financial in Saudi Arabia, said the agreement is a ‘strategic investment of the Public Investment Fund and will provide enough capital to move forward in the company’s programs to expand and benefit from an extra market share.’