The Tadawul All Share Index closed the trading session 0.89% lower as the escalating conflict in Saudi Arabia dampened investor sentiment on Tuesday.
The Iran-backed Houthi group launched fresh attacks against Saudi Arabian targets. Saudi Arabia and Yemen, meanwhile, launched retaliatory airstrikes on Houthi sites, media reports said.
In macro news, Saudi Arabia's annual inflation rate for August remained at 1.8% for the fourth straight month, according to a report by the General Authority for Statistics. Month over month, inflation edged up.
"On a monthly basis, the (CPI) recorded a relative increase of 0.1% in August 2026 compared to July 2026, mainly due to the increase in the prices of the housing, water, electricity, gas and other fuels division by 0.2%, driven by a 0.2% increase in the prices of the actual rent group for housing. The prices of the transport division also increased by 0.6%, while personal care, social protection and other goods and services division increased by 0.8%, and the insurance and financial services division rose by 0.5%. On the other hand, the prices of the food and beverage division decreased by 0.1%, while the restaurants and accommodation services division decreased by 0.4%," the report said.
The kingdom's wholesale prices logged a 4.6% year-over-year growth in August, compared with the 5% increase in the prior month. Saudi's producer price index data, meanwhile, showed a 5.3% annual rise in July. Month-over-month, the index ticked down 2.8%.
On the corporate front, Tabuk Agricultural Development Co. (SASE:6040), d/b/a Tadco, shares closed 0.46% in the red as it entered into a contract to sell its spring onion crop for 8 million Saudi riyals.