RIYADH: The Saudi main index ended October on a positive note after losing ground in the previous two months, as investors’ sentiment improved with the start of the earnings season.
The Tadawul All Share Index ended the month gaining 2.3 percent from September’s level, to reach 11,667 at the closing bell of Monday's session.
The index also ended in the green in the last session of the month, with a 0.3 percent increase.
The monthly rise was led by a 4.12 percent leap in the Kingdom’s most valuable bank, Al Rajhi, as it posted a 19 percent profit surge in the first nine months.
National Shipping Co. of Saudi Arabia, known as Bahri, gained 7.71 percent since the beginning of October, posting a 361 percent growth in profits during the first nine months.
Saudi British Bank surged 3.99 percent during the month, as it reported a 26 percent increase in profits in the first nine months of 2022.
Among the fallers, the index saw a 2.80 percent drop in oil giant Saudi Aramco, and a 1.87 percent decline in Rabigh Refining and Petrochemical Co.
Sabic declined 1.9 percent, as the chemical giant saw its profit decline by 10 percent during the first nine months of 2022.
In the prior months, TASI suffered huge losses on concerns over inflationary trends, unstable gas prices, and aggressive Fed hikes.
Speaking to Arab News, investors believe that the market is going to remain unstable.
“The markets are likely to continue to be volatile and in jittery mode until inflation is under control,” Saudi-based independent economist Fawaz Al-Fawaz said.
“The decline stems from uncertainty about the global economy, the decline of growth, and the existence of recession in major economies, especially the US and the EU,” Saudi economist Ali Alhazmi said.
He added: “We cannot avoid the continued closure in China, which affects supply chains. We also have the ongoing war between Russia and Ukraine.”
He concluded that the direction of the market is unpredictable as a result of these changes in the economy.