Where did the money find its refuge in the Saudi market before Trump's turmoil?

With the beginning of 2025, and while the global markets were waiting for a new round of possible commercial tensions as a result of the growing statements of US President Donald Trump, investors in the Saudi market went to the defense sectors in search of safer ports amid external fog and fluctuations in oil prices. Sectors such as real estate, communication and banks have recorded remarkable profits, at a time when most other sectors suffered from sales pressure, influenced by the weakness of the appetite for risk worldwide and various expectations for the macro -economic path. Most of the shares of companies in those sectors performed well over the past quarter of last year, powered by the huge projects of the 2030 vision, which alleviate the limitations of foreign ownership and high interest rates. In general, the Saudi market was cautious, as the general index did not record a significant change at a level of more than 12 thousand points, while the variety of global markets was diversified before the so -called ‘liberation day’, after which the effects of international financial markets came. Fixed stock indicators during the first chapters this year index change during the first quarter 2025 Saudi Market Index -0.09 %”MSCI” index for Asia -Pacific %0.23 S & P 500 -5 %STOXX 50 index for the euro area 7.2 Brent rough 0.13 real estate at the top management sector during the Sewi -Market Fall. First quarter, with the first time per rate. And other profits and reached 41.7%, despite some of the shares in the same sector. The year with the rise of the share of “Saudi Telecom” business (STC) with 13.4%, “Mobily” with 14.2%and “Zain” by 9.7%. Zidane notes that the sector includes ‘valuable shares and defense companies, so it has a good role in the investment portfolios, which led to the big profits despite the global pressure and fluctuations’, and added that the current assessments of the sector are good. “The markets expect the sector’s turnover to grow at a higher rate than the historic average of the past five years, with 13% in the first quarter and 8% in the second quarter … More than 25% of analysts recommend purchase,” according to Zidane. Banks are steadfast with the strong demand for loans in the Kingdom with the support of Vision 2030 projects, which strengthened the performance of the banking sector, which was third with a 7.7%increase after announcing strong financial results, which also benefits from the increase in net interest income. The raised profits for the sector rose about $ 20% in the fourth quarter of last year to approximately $ 20.94 billion, contributing to the rise of the “Al -Rajhi Bank” share – the second largest weight on the general index – with 7.8%, the “National Bank” with 7.3% and the “development bank”. However, the lack of explanation of US interest rates in the next phase, especially in light of the commercial escalation between the United States and China, can affect banking activities, as the Saudi Central Bank follows the example of its US counterpart in its monetary policy. Hisham al -ayas, the chief financial analyst of the “East”, is of the opinion that commercial escalation can be a two -boundary weapon in the coming period, on the negative side, “the escalation can lead to the yield of ghost of inflation, which can increase the US federal, which will increase the risks of the risks. leading to the hesitation of foreign investment. Entertainment sector was, about 31%, but the most influential were the energy sectors, basic materials and public facilities that lost between 4.2%and 13.3%. The falling road for oil prices, currently trading below $ 67 a barrel, and the dark expectations of demand, especially from China, the largest consumer in the world, pushed the shares of relevant businesses to refuse the energy sector by 4.2% and basic materials by 5.4%. Aramco, which has the largest weight on the general index, lost 4.6% during the first quarter, which was also influenced by the company’s results and cash distributions that disappointed expectations. In the basic materials sector, the majority of the shares of petrochemical enterprises fell, the most prominent of which was the decline in the price of the shares of “Sabic” and “Sabic Agricultural Question”, “Yanbat” and “Lubrrev” by between 4.5% and 8.2%. In addition, the share of the “Saudi Arabian mining business” (Maaden) – the second largest company in the sector – fell by 8%. However, the shares of cement businesses, one of the sectors dependent on the local market, have exacerbated the losses of the sector, as most of the surge in the real estate has risen. “Petrochemical companies have faced several challenges, such as the slowdown in China, which forced the government to stimulate the economy over the past year, as well as the decline in demand … All this affects prices and margins. Financing costs are also expected to affect and affect 2025 to three in interest rates, which will affect the cost of financing.” He pointed out that the horizon of the sector is influenced by the commercial escalation, which will affect if it continues the economies of the whole world, which will push oil prices and then petrochemical prices. The public utilities sector recorded the biggest loss in the percentage, with 13.3%, with the shares of “Aqua Power”, the largest company in the sector, decreased by 14.5%, “Saudi Arabia for electricity” by 5.6%and “facilities” by 16.2%.