Saudi stocks rise on earnings optimism and foreign investor access
Riyadh – Saudi Arabia’s stock market closed higher as investors positioned themselves ahead of the upcoming earnings season and the landmark decision to open the capital market to all categories of foreign investors from February, a move widely seen as a confidence booster for regional equities.
Market sentiment was further supported by expectations of stronger fourth quarter corporate results, improving liquidity conditions, and cautious optimism around oil price stability, all of which helped lift buying interest across banking and blue chip stocks.
The benchmark Saudi index advanced for a third straight session, led by gains in major lenders such as Al Rajhi Bank, as traders reacted positively to signals of regulatory easing and the potential for increased foreign capital inflows.
Analysts noted that the anticipated market opening could improve valuation depth, broaden investor participation, and enhance Saudi Arabia’s standing among emerging markets, even as concerns remain about global volatility and regional geopolitical risks.
Oil prices also played a supportive role, rebounding sharply in recent sessions amid heightened geopolitical pressure on Iran and supply related concerns, which helped reinforce confidence in energy linked revenues across the Gulf.
Despite this support, market participants remain selective, closely watching whether crude prices can sustain their recovery and continue to provide a stable earnings backdrop for listed companies.
In contrast, Qatar’s stock market edged lower as investors opted to lock in profits, with selling pressure seen across all major constituents including leading banking stocks.
Cautious sentiment persists in the Qatari market as investors weigh earnings prospects against regional uncertainty and the broader risk environment.
Outside the Gulf, Egypt’s equity market continued its strong upward momentum, with the main index touching a new record high supported by gains in real estate and diversified conglomerates.
The rally reflects sustained domestic investor interest, improving confidence in economic reforms, and expectations of resilient corporate performance despite global headwinds.
