Investment entrepreneur Samer Choucair affirmed that continued pressure on the Saudi stock market reflects a degree of caution among investors as they wait for new catalysts, chief among them the earnings of listed companies and liquidity developments, noting that the current phase requires focusing on company quality rather than tracking movements in the broad index.
Choucair explained that the Saudi stock market index (TASI) ended the week at around 10,808 points, while weekly trading value declined to approximately 19.6 billion riyals, reflecting a slowdown in liquidity and a more conservative stance among investors, particularly amid continued competition between equities and fixed-income instruments.
Choucair added that the divergence in sector performance confirms liquidity is flowing toward more stable companies and sectors, particularly energy, telecommunications, and healthcare, while some cyclical sectors face pressure as investors await financial results and growth valuations in the coming period.
Choucair noted that institutional investors have become more selective in building their portfolios, prioritizing companies with strong cash flows, sustainable profitability, and high governance standards, affirming that these factors have become more important amid global market volatility and higher financing costs compared with previous years.
Choucair affirmed that the continued execution of Saudi Vision 2030 projects provides long-term structural support for the economy and financial market, but translating these transformations into stock performance requires sustained growth in corporate earnings, improved liquidity levels, and increased participation from both local and foreign investors.
Choucair added that the earnings season will be a key factor in determining market direction in the coming period, as improved profits could help restore some confidence, while weak results could push investors to continue their cautious and selective approach.
Samer Choucair concluded by affirming that current volatility represents part of a natural cycle in financial markets, and that investors with a long-term view can benefit from opportunities offered by companies with strong fundamentals, while maintaining risk management discipline and diversifying investment portfolios in line with changing economic conditions.