Amidst regional geopolitical turmoil, Saudi market experiences significant growth, boasting a whopping $15.2 billion surge, counterbalancing Gulf losses.
On a Sunday in June 2025, the Saudi stock market defied regional turmoil, climbing back by a whopping $15.2 billion, erasing the heavy losses suffered earlier in Gulf markets last Thursday. This reversal catapulted the total market value into positive territory, with a total gain of $1.3 billion - a 0.03% increase.
Despite the ongoing confrontation between Iran and Israel escalating regional tensions, investor sentiment surprised everyone with a dose of stoicism. Fear of potential energy disruptions and regional instability had earlier triggered a wave of sell-offs across Gulf markets.
The aftermath on the Kuwait Stock Exchange was particularly distressing, with a capitalization drop of $6.2 billion (-3.8%). Qatar followed suit, losing $6.1 billion (-3.6%), while Bahrain reported a $1.3 billion decline (-1.9%) and Amman a $300 million decrease (-0.9%).
Kuwait's market experienced a rollercoaster session that wiped off a staggering 1.87 billion dinars from its value. Total market capitalization plummeted to 46.85 billion dinars, down from 48.72 billion dinars at the end of the prior week.
Surprisingly, trading was suspended for 15 minutes after the Premier Market Index plunged more than 5% at the opening. Despite the overall downturn, market liquidity increased by 13%, reaching 127.6 million dinars compared to 112.8 million dinars in the previous session.
Five stocks accounted for over half of the total trading value, with Kuwait Finance House leading the pack with 34.5 million dinars in trades, followed by the National Bank, Warba Bank, International Bank, and Boubyan Bank.
Trading volume also increased by 5%, with 446 million shares exchanged. KFH remained the most traded stock, but Warba and the International Bank were hot on its heels.
Sector-wise, all segments except healthcare suffered losses. Consumer goods stocks took the steepest hit (-7%), followed by technology (-6.7%). Out of the 131 listed companies, 119 saw declines in share prices, while only 9 recorded gains and 3 remained unchanged.
Contrasting Thursday's widespread losses across the Gulf, the Saudi market's performance stood out. Saudi Arabia alone managed to regain $12.7 billion, while Abu Dhabi, Dubai, Kuwait, Qatar, Amman, and Bahrain shook off losses ranging from $0.2 billion to $7.5 billion.
Analysts remain cautious, warning of persistent investor caution due to the risk of conflict spreading to strategic areas, such as Yemen or critical maritime routes, potentially leading to a new energy crisis and further pressure on global and regional markets.
However, the Saudi market's recovery was not purely a fluke. It was backed by a shift in investor sentiment, strong economic fundamentals, increased trading activity, and an improved capacity to absorb and respond to geopolitical risks. Major companies like Aramco contributed significantly to the market's resilience, suggesting that investors were focusing on the long-term prospects of the Saudi economy rather than just short-term geopolitical dangers.
In stark contrast to the regional market turmoil, the business sector in finance showed unexpected resilience, particularly in the industry of Saudi Arabia. Notably, key companies such as Aramco contributed significantly to the market's capacity to absorb and respond to geopolitical risks, demonstrating a shift in investor sentiment towards the long-term prospects of the Saudi economy.
