Saudi stocks broke the longest losing streak in two weeks, supported by collective gains in bank stocks and a number of leading companies, which offset the pressures on the majority of stocks. The TASI index closed at 10,720 points, up 0.2%.

The rise came despite weak market breadth, as the number of declining stocks exceeded those advancing, reflecting that support was concentrated in the largest-weighted companies, without turning into a broad rally.

The market movement is consistent with Al-Eqtisadiah's previous analysis, which indicated that it may be seeking stability at current levels at least until corporate financial results are released.

Leadership support faces declining companies

The main support came from the banking sector, which rose 0.5%, with all 10 of its stocks advancing, and accounted for trades worth 635 million riyals, representing about 19% of total market liquidity. The index was also supported by gains in Saudi Aramco, SABIC, and Suleiman Al Habib. In contrast, the index faced pressure from declines in Electrical Industries, Maharah, and ACWA Power.

TASI

Liquidity declines and shifts toward rising stocks

Trading value fell to 3.4 billion riyals, a decline of 14%. Session liquidity remained about 34% lower than the daily average since the beginning of the year, limiting the strength of the positive signal from the index's rise.

Despite the decline in activity, the distribution of trades improved compared to the previous session. Rising stocks accounted for about 1.93 billion riyals, representing 58% of trading value.

112 stocks rose, compared to 140 declines, and the rest were unchanged. By sector, 13 sectors rose against 9 declines. The healthcare sector led gains, rising 0.7%.

In contrast, the pharmaceutical sector led the declines, falling 1.6%, while banks were the most traded with a value of 635 million riyals.

Financial Analysis Unit