Overview:
Saudi financial markets displayed mixed performance this week as crude oil prices stabilized around USD 87-90 per barrel following geopolitical developments affecting regional supply routes. The Saudi stock index registered modest gains of 28.57 points to close at 10,845.58 points on elevated trading volume of 5.2 billion riyals. Banking sector credit growth accelerated at 6.9 percent year-over-year, while gold prices extended gains for a third consecutive session amid investor focus on inflation data.
Details:
Crude oil remained supported by supply concerns, with Brent crude settling at approximately USD 87.81 per barrel. Shipping traffic through the Strait of Hormuz fell to six vessels on one day, compared with an average of eleven over a ten-day period, reflecting ongoing tensions in the region. Analysts attributed price support to geopolitical factors rather than fundamental demand indicators.
The Saudi banking system demonstrated resilience with net loans and advances growing 6.9 percent in the quarter relative to the same period last year. Loan loss provisions at Saudi banks increased 33.5 percent, indicating enhanced capital buffers amid economic uncertainties. Meanwhile, return on equity grew 8.9 percent, suggesting improved profitability despite tightening credit conditions.
Gold traded at USD 4,432.74 per ounce following its third consecutive daily advance, as investors repositioned ahead of anticipated inflation data releases. European natural gas prices surged 11 percent to USD 734 per thousand cubic meters, reflecting broader energy security concerns affecting global commodity markets. The Kingdom will host the second Global Logistics Forum from November 29 to December 1, 2026, under royal patronage, coinciding with the United Nations Global Supply Chain Forum.
Outlook:
Markets are monitoring further developments in regional geopolitical dynamics and their impact on crude oil supply and shipping routes. Investors remain focused on inflation data releases and potential central bank policy responses, which could influence precious metals demand and currency valuations in coming sessions.