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Tadawul Shares End Monday Lower; Saudi Arabia's Construction Activity Edges Up in August

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Saudi equities shares closed lower as plans regarding a new restricted zone in the Strait of Hormuz shrugged off the optimism over Saudi's second-highest 2026 reading of its construction activity index.

At the close of Monday trading, the Tadawul All Share Index closed 0.26% in the red. Out of the 272 listed companies, 73 stocks were higher, while 186 were lower.

According to a report by Alrajhi Capital and S&P Global, the seasonally adjusted alrajhi capital Saudi Construction Index ticked up to 55.4 in August from 55.2 in July. The month showed a robust boost in output growth.

"The operating environment remained supportive, with quantity purchased (by construction companies) rising at its fastest pace since the survey began, and suppliers' delivery times improving for a fourth consecutive month. Although input cost inflation accelerated during August, firms remained optimistic about the outlook, supported by healthy project pipelines and expectations of continued activity growth," Alrajhi Capital Research Head Sultan Altowaim commented.

Also affecting sentiment is Iran's plan to impose a new restricted zone in the Gulf region in the coming days. Iranian Supreme National Security Council Secretary Mohsen Rezaei said that vessels entering the zone will be added to a sanctions list.

Back at home, Saudi Arabian Oil Co. (SASE:2222), d/b/a Saudi Aramco, entered into a nonbinding memorandum of understanding with Sony Semiconductor Solutions to boost industrial operations via artificial intelligence. Aramco shares were flat at closing.

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