Saudi and Egyptian Stock Markets Reflect Diverging Trends Amid Earnings Reports

A decline had been recorded in Saudi Arabia’s stock market by the close of trading on Sunday, marking the fourth consecutive session of losses. The downturn had been attributed to disappointing corporate earnings, which had weighed on investor sentiment. In contrast, Egypt’s stock index had registered gains, supported by optimistic company results that had provided a boost to market confidence.  

Saudi Arabia’s benchmark index had fallen by 0.6%, with banking stocks contributing significantly to the decline. A decrease of 0.4% had been recorded in the shares of Al Rajhi Bank, while Riyad Bank had experienced a more substantial drop of 3.4%. Investor sentiment had been negatively impacted by weaker-than-expected financial performance from these major financial institutions, as concerns over profitability had persisted.  

In addition, a decline of 0.5% had been observed in the shares of Saudi Tadawul Group, the operator of the Saudi stock exchange. The drop had followed the company’s annual profit report, which had failed to meet analysts’ expectations. The weaker earnings performance had prompted a cautious response from investors, leading to a decline in the stock’s value.  

The broader market sentiment had also been influenced by fluctuations in oil prices, which had fallen on Friday. Investors had been closely monitoring an Oval Office argument between the U.S. and Ukrainian presidents, as uncertainty over geopolitical tensions had contributed to market volatility. Furthermore, concerns had been raised over Washington’s newly proposed tariffs, as well as Iraq’s decision to resume oil exports from the Kurdistan region. These factors had combined to create an environment of uncertainty, affecting investment decisions in oil-dependent economies such as Saudi Arabia.  

Outside the Gulf region, Egypt’s stock market had shown a contrasting trend, with the blue-chip index gaining 0.8%. The rise had marked a reversal of a four-day losing streak, as investor confidence had been bolstered by strong corporate earnings. Among the key gainers, Commercial International Bank had recorded a rise of 1.1%, reflecting positive market sentiment toward Egypt’s largest private-sector bank.  

A more substantial gain had been observed in the shares of Fawry for Banking Technology and Electronic Payment, which had surged by 4.4% following the release of its 2024 profit report. The company’s improved financial performance had reassured investors, leading to increased buying activity.  

E-Finance for Digital and Financial Investments had also reported a sharp rise in its fourth-quarter profits, resulting in a 2.7% increase in its stock value. The positive earnings report had underscored the strength of Egypt’s digital and financial services sector, contributing to the broader market rally.  

Further supporting investor sentiment in Egypt, data from the central bank had indicated that the country’s M2 money supply had grown by 32.1% on a year-on-year basis in January. The increase had been interpreted as a sign of liquidity expansion within the economy, which had potential implications for financial stability and investment activity.  

Overall, the performance of stock markets in Saudi Arabia and Egypt had reflected diverging trends, driven primarily by corporate earnings reports and broader economic factors. While disappointing financial results had continued to weigh on Saudi stocks, upbeat earnings and macroeconomic data had provided support to Egyptian equities. Investors had remained watchful of external developments, including geopolitical tensions and oil price movements, as these factors had been expected to shape market dynamics in the coming weeks.