The Saudi stock market is closing in on its longest streak of weekly gains in nearly two years

The Saudi stock market continues its upward trend for the fifth week in a row, on track to achieve the longest streak of gains since the beginning of 2024, supported by traders’ optimism about the results season and positive expectations for the growth of the Saudi economy. The general index “TASI” rose this morning, Thursday, and exceeded the level of 11,700 points, benefiting from the rise of leading shares, especially “Aramco”, “Al Rajhi Bank” and “SABIC”, while the shares of “National Bank” and “SABIC” fell. Recurring scenario? The index, which has risen about 1% since the start of the week, is nearing its fifth consecutive weekly gain, which is the longest streak since the start of 2024. Mary Salem, a financial analyst at Al-Sharq, says that the previous longest streak of weekly gains, which lasted six weeks about two years ago, helped turn TASI 22 after it had been on track. a loss She added: “Those increases were significantly based on the results. The current market recovery started with the news of liberalization of foreign ownership, and the turn is now on the results to determine the sustainability of the increase, so that the scenario that happened about two years ago will be repeated.” Traders are optimistic. For his part, Ikrami Abdullah, chief financial analyst at Al-Eqtisadiah newspaper, believes that market traders seem to be more optimistic than think tanks about the results season, which is moving the market positively in the current period. During an intervention with Al-Sharq, Abdullah said: “The increase in growth expectations for the Saudi economy, especially the non-oil sector, which directly affects listed companies, is one of the factors limiting the negative impact of things like the US government shutdown, the return of trade tensions and low oil prices.” Advanced Petrochemicals shares fall despite better-than-expected results. Before the start of trading on Thursday, Advanced Petrochemicals announced third-quarter profit growth of more than 56% year-on-year, beating expectations, thanks to lower raw material prices and improved net income. The company’s shares fell by about 1% in morning trading and recorded 35.28 rials. Commenting on the quarterly results, Abdullah said that the gross and operating profit growth rates were higher than the revenue growth rate, indicating that the company was able to control sales and operating costs. However, net profit growth is slightly lower than the revenue growth rate and the rest of the indicators, which may indicate an increase in financing costs.” However, he pointed out that the stock’s gains, which have exceeded around 11% since the start of the year, could limit investors’ reaction to the positive results.