-- The Tadawul All Share Index closed Wednesday at 0.88% lower as the continued closure of the Strait of Hormuz overshadowed the cheer from the extension of the fragile US-Iran ceasefire deal.
US President Donald Trump announced on his Truth Social account that the ceasefire deal with Iran will be extended indefinitely and will continue with the blockade of its ports until the Middle Eastern nation presents a "unified proposal".
However, Mahdi Mohammadi, a senior advisor to Iranian Parliament Speaker Mohammad Baqer Qalibaf, suggested that the announcement might be a political ploy for a surprise attack by the US.
"In the Middle East conflict, Trump extended the ceasefire indefinitely just before its expiry after Iran refused further negotiations due to unreasonable US demands. This marks a U-turn in tone, as Trump had earlier ruled out an extension and hinted at military action. With Iran reportedly not requesting the ceasefire and the Strait of Hormuz issue still unresolved, Iran appears to hold the upper hand at present," Danske Bank said in a note.
Back at home, Saudi Arabia's March construction cost index increased 2% from the 1.4% rise in February. The climb was mainly due to a growth in construction costs in the non-residential and residential sectors.
On the corporate front, Arriyadh Development (SASE:4150), d/b/a Ardco, agreed to sell its stake in the Al Arabi Riyadh Development Real Estate Fund to Sumou Holding Co. The property group will sell its 10% interest for 184.5 million Saudi riyals. Ardco shares closed 0.11% in the red.