Saudi Arabia’s stock market ended the trading session lower, with the Tadawul All Share Index declining 1.28 percent at the close amid broad-based selling across key sectors.

The benchmark index retreated as weakness in banking, energy and materials shares offset gains in select defensive and consumer-focused stocks.

Market participants cited a combination of profit-taking and external pressures, including movements in global energy prices and investor sentiment across emerging markets.

Financial stocks, which carry significant weight on the index, contributed notably to the downturn.

Energy-related companies also faced pressure as oil prices fluctuated in international markets, influencing risk appetite in the region.

Despite the daily decline, analysts noted that Saudi Arabia’s equity market has remained relatively resilient in recent months, supported by strong corporate earnings and continued economic reform momentum under Vision 2030. The kingdom’s diversified investment initiatives and infrastructure expansion plans have provided a supportive backdrop for long-term growth prospects.

Trading volumes were reported as moderate, with investors monitoring global macroeconomic developments and regional policy signals.

Market observers said short-term volatility is not uncommon, particularly following periods of sustained gains.

The Tadawul remains one of the largest exchanges in the Middle East, attracting both domestic and international investors.

Analysts expect trading patterns in the coming sessions to reflect developments in global commodity markets and broader investor sentiment.