Saudi Arabia’s stock market closed lower, with the Tadawul All Share Index declining by 0.40% at the end of trading, as losses in key sectors outweighed gains elsewhere.

The benchmark index retreated amid weakness in selected banking and materials stocks, which exerted downward pressure on the broader market.

Trading volumes were moderate, with investors adopting a cautious stance as they assessed movements in global energy markets and regional economic signals.

Energy-related shares, closely linked to fluctuations in crude oil prices, showed mixed performance.

Oil remains a central driver of investor sentiment in the kingdom, given its importance to fiscal revenues and corporate earnings across multiple sectors.

Recent volatility in international crude benchmarks has contributed to short-term market swings.

Market participants also continued to monitor domestic economic indicators and corporate earnings announcements, which have provided mixed signals about growth momentum.

While some companies have reported stable performance, others face margin pressures linked to input costs and global demand trends.

Despite the day’s decline, the Tadawul index remains influenced by broader structural reforms and investment initiatives tied to Saudi Arabia’s Vision 2030 transformation programme.

Analysts note that long-term capital inflows, including foreign participation, have supported liquidity and diversified sector representation in recent years.

For now, traders describe the session’s losses as a measured pullback rather than a shift in underlying fundamentals.

Investor attention is expected to remain focused on oil price dynamics, monetary policy developments and corporate results in the sessions ahead.