Tadawul Shares Extend Losing Streak; Saudi Arabia's April PMI Grows
The Tadawul Share Index closed Tuesday 0.75% in the red as Middle Eastern geopolitical tensions overshadowed the cheer about the recovery of Saudi Arabia's non-oil private sector.The Riyad Bank Saudi Arabia Purchasing Managers' Index is back in the expansion threshold in April to 51.5 from 48.8 in the previous month.The report attributed the month-over-month increase to increased output, improved business volumes, and a modest uplift in expectations for activity."The improvement in the PMI reflects a recovery in business activity and new orders, both of which moved back into growth territory. Firms reported higher output levels, supported by an increase in domestic demand and continued progress on existing projects. This suggests that internal economic momentum-driven by government spending, infrastructure development, and private sector participation- continues to act as a key stabilizing force for the economy," Riyad Bank Chief Economist Naif Al-Ghaith commented.Dampening sentiment is the situation in the Strait of Hormuz as the US and Iran launched attacks on each other's ships in the region. The US struck six small boats, while the Iranian side fired warning shots at a US vessel.Further to this, the Middle Eastern nation launched missile and drone attacks on the United Arab Emirates in retaliation for the "US military's adventurism." The strikes resulted in fires at Emirati ports.Back at home and on the corporate front, Sumou Real Estate (SASE:4323) shares closed 0.03% higher as it entered into a 35-year lease deal with Saudi Airlines Real Estate Development for a land plot that will be developed for a mixed-use project in Jeddah.