Saudi Market Closes Monday's Session Lower Despite Positive PMI

The Saudi market ended Monday's session lower, despite the non-oil sector Purchasing Managers' Index remaining in positive territory, and amidst a decline in oil prices during trading. This drop came after a bullish session at the start of the week, as the TASI index closed at 10,479.78 points, down 26.06 points or 0.25%.

Aramco shares traded at SAR 25.56 during the session, up 0.55% from a previous close of SAR 25.42, making it one of the supportive stocks for the index during the session.

The TASI index had closed at 10,505.84 points in Sunday's session following a 1.09% rebound, which raised expectations for a continued recovery before the following session returned to a decline.

The mixed performance reflects traders' caution amidst the pressure of falling oil prices, while simultaneously tracking signs of improvement in non-oil activity, which represents a key pillar of Saudi economic diversification. Aramco's stock performance remains pivotal in determining the index's direction due to its significant market weight.

What do these terms mean?

Purchasing Managers' Index: A monthly index measuring business activity through new orders, output, and employment, with a reading above 50 points indicating activity expansion. TASI: The main index of the Saudi Exchange, comprising the largest listed companies. Non-oil sector: Economic activities outside oil production and sales, including manufacturing, trade, and services.