TASI Holds at 10,912 Points as Aramco Benefits from Brent Above Breakeven Level

The TASI (Tadawul All Share) index closed at a level ranging between 10,912 and 10,925 points, up slightly by 0.13% in the August 18 session, maintaining its stability with a market capitalization exceeding 3.14 trillion Saudi riyals.

Saudi Aramco shares maintain their firmness as the index's heaviest weight, with Brent crude trading at $91.75 per barrel, clearly above the estimated fiscal breakeven price of $70 to $80, providing a comfortable safety margin for the Saudi budget.

The banking sector, led by Al Rajhi Bank and Saudi National Bank, continues to record relative stability supported by higher net interest margins, while the Public Investment Fund accelerates IPO momentum under Vision 2030 in the tourism, entertainment, and technology sectors.

This scene reflects a stable Saudi outlook within a pressing macroeconomic environment, however, its continuation remains contingent on oil prices staying above the breakeven threshold amid escalating concerns over a global demand slowdown.

What do these terms mean?

Fiscal Breakeven Price: The oil price a country needs to cover its government spending without a deficit — the higher oil trades above this price, the more comfortable the country's fiscal position is.

Net Interest Margin (NIM): The difference between what banks earn from loan interest and what they pay on deposits — it rises in a high-interest-rate environment, boosting bank profits.

Vision 2030: Saudi Arabia's economic diversification plan aimed at reducing dependence on oil and developing the tourism, entertainment, and technology sectors, including listing state-owned companies on the stock exchange.