Saudi Arabian equities ended the trading session sharply lower, with the Tadawul All Share Index closing down one point eight nine percent, reflecting broad-based selling across key sectors as investors reacted to regional geopolitical uncertainty and global market caution.

The decline marked one of the more pronounced daily losses in recent weeks and underscored heightened sensitivity to external risks.

Losses were led by heavyweight sectors including banking, petrochemicals and telecommunications, where investors trimmed exposure amid concerns about near-term volatility.

Several of the index’s largest constituents closed firmly in negative territory, exerting downward pressure on the overall market despite pockets of resilience in select defensive stocks.

Market participants pointed to ongoing geopolitical tensions in the Middle East as a key factor weighing on sentiment, alongside uncertainty over global monetary policy and its implications for capital flows into emerging markets.

Fluctuations in oil prices also contributed to cautious positioning, given the central role of energy revenues in the Saudi economy and corporate earnings outlook.

Despite the day’s decline, analysts noted that underlying fundamentals in the Saudi market remain supported by government-led economic reforms, infrastructure spending and efforts to diversify growth beyond hydrocarbons.

Trading volumes were broadly in line with recent averages, suggesting the move reflected risk management rather than panic selling.

Investors are expected to remain focused on geopolitical developments, upcoming corporate earnings and macroeconomic signals in the days ahead, as the market balances near-term uncertainty against longer-term structural drivers of growth.