Tadawul Shares End Week Higher; Saudi Arabia's Q2 Real GDP Declines
Saudi equities rebounded as they ended the last trading day of July higher, with the market shrugging off the downbeat preliminary data in Saudi Arabia's latest economic release.At the close of Thursday trading, the Tadawul All Share Index closed 0.43% in the green. Tabuk Agricultural Development Co. (SASE:6040), d/b/a Tadco, was the biggest gainer at 10%.Flash data from the General Authority for Statistics showed that real GDP declined 4.8% year over year in the second quarter amid a drop in oil activities during the period. Quarter-over-quarter, the Saudi economy fell 4.9%.In international news, and as expected, the US Federal Reserve decided to keep interest rates in the 3.50% to 3.75% range, with investors expecting a rate hike in September and December."Our US economists' baseline remains that the Fed raises rates by 50bps this year (25bps hikes in September and December). But they think the FOMC is unlikely to take much comfort in yesterday's market reaction, with the rise in long-end rates coupled with the decline in forward real yields suggesting doubts about an imminent return of price stability. I would also add that while aggregate US credit conditions are far from restrictive, aggressive curve steepening could exacerbate existing pockets of vulnerability, such as the lacklustre housing market, as highlighted in my money and credit update earlier this week," Deutsche Bank Research said in a note.Back at home, a new wave of earnings reports were published with Fourth Milling Co. (SASE:2286) and Arabian Mills for Food Products (SASE:2285) posting higher attributable net profit and revenue for the first half of 2026. Multi Business Group (SASE:9619), on the other hand, logged mixed results as it reported a decline in revenue and an increase in net profit.Fourth Milling and Multi Business rose 2.34% and 2.11% at closing, while Arabian Mills ticked down 0.04%.Meanwhile, Abdulaziz and Mansour Ibrahim Albabtin (SASE:9549), d/b/a Al Babtain Food, shares soared 9.88% as it entered into a binding deal to sell its 3% stake in Chocolate Lake for Chocolate and Confectionery Manufacturing to Indulgent Food International Holding.
