Overview:

Equity markets across major regions recovered ground today as geopolitical risk diminished following the United States and Iran's mutual suspension of military operations. Oil prices declined sharply on the relief, while Saudi Arabia's Tadawul index opened 0.3% higher. Corporate earnings reports from regional companies and international market volatility remain key drivers of investor sentiment as summer trading patterns persist.

Details:

The Saudi Arabia All Share Index (Tadawul) opened at 10,794 points with a 0.3% gain and trading volume of 205.9 million riyals. In the broader regional context, 120 listed companies advanced during the session, with overall market turnover reaching 4.4 billion riyals. Investor focus has shifted toward reduced geopolitical premium following the announced pause in US-Iran hostilities, which had persisted for approximately one week.

Crude oil prices retreated sharply, declining more than 7% to USD 89.24 per barrel, marking the lowest level since July 21. The reduction in military escalation concerns drove the selloff despite longstanding supply fundamentals. Gold prices also retreated 0.7% to USD 4,044.81 per ounce, influenced by dollar strength in spot trading.

Corporate earnings during the second quarter of 2026 showed mixed performance. Petro Rabigh returned to profitability with 2.66 billion riyals after prior-period losses of 1.37 billion riyals. Al-Rajhi Cement reported net profits of 30.4 million riyals, up 48.3% year-over-year. Sadafco dairy company profits fell 25% to 88.2 million riyals. Zain Saudi Arabia, the telecommunications operator, reported first-half 2026 revenues of 5.3 billion riyals with net profit of 402 million riyals, reflecting 8% profit growth.

Outlook:

Investors are monitoring the Federal Reserve's interest rate decision, with market participants anticipating potential monetary policy adjustments in coming weeks. Saudi Aramco is scheduled to announce its first-half 2026 financial results on August 4, with analysts watching for indicators of sustained energy sector strength amid volatile crude dynamics.