Saudi Arabia’s Market Index Sees 2.6% Increase, Driven by Strong Domestic and International Demand

Saudi Arabia’s market index closed the week with a 2.6% increase, hitting its highest level in nearly two years. The gain was driven by strong demand from both domestic and international investors, with around 1.55 billion shares worth 42.1 billion riyals traded on special deals with Saudi Aramco. Al Rajhi Bank and Saudi Aramco shares also contributed to the rise, gaining 3.7% and 1.8%, respectively, in the first day of trading after the secondary offering.

Outside the Gulf region, Egypt’s leading stock index fell for a third straight session, with most sectors declining. International Commercial Bank shares fell 2.8%, indicating a challenging market environment in the region. Meanwhile, other markets like Kuwait, Qatar, Bahrain and Oman also saw fluctuations in their indices and trading values.

Sources revealed that Saudi Arabia has awarded more than half of the shares in the secondary offering to foreign investors, with strong demand from countries such as the United States, Britain, Hong Kong and Japan. Total demand for Aramco’s secondary offering exceeded $65 billion, indicating strong interest from domestic and international investors. Miyahuna Holding shares jumped 19.8%, while shares of a water and sewage infrastructure company began trading after an IPO at 11.5 riyals per share also contributed to gains across sectors in Saudi Arabia’s index.

Overall, this week’s market performance highlights the growing interest in Saudi Arabian equities among both domestic and international investors despite some volatility seen in other markets outside of the Gulf region.

Saudi Arabia’s market index ended its weekly session with an increase of approximately 11,855 points and total trading value of around 54 billion riyals.

Investors showed strong demand for Saudi Aramco’s secondary offering during special deals on Friday.

Al Rajhi Bank shares rose by approximately 3.7% on Monday while Saudi Aramco shares gained approximately 1.8%. Miyahuna Holding shares jumped by over 19% during regular trading hours on Tuesday.

According to sources close to the matter,

Saudi Arabia sold more than half of its secondary public offering to foreign investors last week.

The US led demand for Aramco’s IPO which exceeded $65 billion last week.