Saudi Shares Rise as Oil Prices Ease, PMI Hits Six-month High
Saudi Exchange-traded shares edged higher on Thursday as investors assessed a decline in oil prices amid comments from US President Donald Trump, alongside the latest PMI data.The Tadawul All Share Index was 0.24% in the green at the end of the trading week."Oil paused a three-day rally after President Donald Trump played down the prospect of a prolonged conflict with Iran," United Securities said in a note. "Crude oil eased below $91 per barrel on Thursday after rising for three consecutive sessions, as investors assessed renewed hostilities in the Middle East alongside efforts to reopen the Strait of Hormuz. President Donald Trump said the latest attacks on Iran would be short-lived despite indicating that the US remains prepared for further strikes, while reiterating claims that the US controls Hormuz."In economic news, Saudi Arabia's non-oil private sector expanded at its fastest pace in six months in August, supported by stronger demand and market activity recovery, with output volumes recording the strongest increase since the start of 2026. The Riyad Bank Saudi Arabia PMI stood at 53.8 in August, up from 53.1 in July. While the latest reading reflected growth in the sector for the fifth successive month, it remained below the survey's long-run average of 56.8."Looking ahead, the improvement in business expectations provides a constructive signal for the remainder of the year," Riyad Bank Chief Economist Naif Al-Ghaith said. "Overall, the August survey signals a firmer growth trajectory for the non-oil private sector, with improving business confidence and sustained domestic activity providing a constructive foundation for growth through the remainder of 2026."On the corporate front, Dar Almarkabah for Renting Cars (SASE:9577) signed a six-month nonbinding memorandum of understanding for the acquisition of food and beverage holding company Zad International Co. The car rental company closed 7.78% in the red.Next week, analysts will focus on the kingdom's final second-quarter gross domestic product data. Based on preliminary data, the economy shrank 4.8% year over year in the second quarter, reversing the 3% growth seen in the first quarter.
