Saudi Arabia's Tadawul All Share Index posted solid gains on Sunday, rising 83.75 points, or 0.76 percent, to close at 11,115.07, demonstrating market resilience even as fresh drone activity clouded peace hopes in the region. The benchmark index recorded SR4.87 billion ($1.29 billion) in total trading turnover, with 135 stocks advancing and 119 retreating.
The Kingdom's parallel market Nomu gained 9.09 points, or 0.04 percent, to close at 22,644.44, with 35 stocks advancing and 31 retreating. The MSCI Tadawul Index gained 13.59 points, or 0.92 percent, to close at 1,489.63.
Market Leaders and Laggards
Elm Co. emerged as the day's best-performing stock, with its share price surging 5.40 percent to SR693.00. Middle East Paper Co. rose 5.33 percent to SR18.78, while CATRION Catering Holding Co. surged 5.03 percent to SR73.05.
On the downside, National Medical Care Co. recorded the steepest decline, falling 9.95 percent to SR104.10. Saudi Arabian Amiantit Co. saw its stock price fall 6.98 percent to SR14.26, and Advanced Building Industries Co. declined 6.64 percent to SR36.00.
Strong Corporate Earnings
Saudi Paper Manufacturing Co. released its interim financial results for the three-month period ending March 31, demonstrating the strength of private sector performance. According to a Tadawul statement, the firm recorded a net profit of SR34.15 million during the first three months of the year, up 65 percent from the same period last year.
The rise in net profit was primarily linked to a significant improvement in gross profit resulting from a 10 percent increase in sales and an improved profit margin. Net profit was also supported by lower general and administrative expenses resulting from cost optimization and operational streamlining, alongside a decline in selling and distribution costs during the period. Saudi Paper Manufacturing Co. ended the session at SR60.30, down 1.15 percent.
Yanbu Cement Co. also announced its interim financial results for the first three months of 2026. A bourse filing revealed that the firm recorded a net profit of SR37.54 million during the first three months of the year, reflecting a 25 percent increase compared to the corresponding period a year earlier. This jump in net profit was mainly due to improved average selling prices, lower cost of revenues, and reduced selling and distribution expenses resulting from lower export volumes, as well as lower financing costs. Yanbu Cement Co. ended the session at SR15.00, up 4.94 percent.
Regional Market Performance
In the wider Gulf, market performance was mixed. Qatar's QSI fell about 0.5 percent to 10,664, while Egypt's EGX30 rose about 1.9 percent to 54,629. Bahrain's BAX declined about 0.4 percent to 1,934, Oman's MSX30 eased about 0.2 percent to 8,331, and Kuwait's BKP declined about 0.5 percent to 9,381.
Why This Matters:
The Saudi market's positive performance amid ongoing regional security concerns underscores the resilience of the Kingdom's private sector and the effectiveness of corporate cost optimization strategies. The strong earnings reports from Saudi Paper Manufacturing Co. and Yanbu Cement Co., driven by operational efficiency and improved pricing power rather than government support, demonstrate that market-based solutions continue to deliver results for investors. However, the fresh drone activity referenced alongside trading data serves as a reminder that regional security stability remains essential for sustained economic growth and investor confidence. The mixed performance across Gulf markets suggests that geopolitical risk continues to weigh on regional capital flows, making security and stability critical prerequisites for long-term market development and foreign investment attraction.