Saudi corporations reported significant net profit increases, driven by measures described as "cost optimization" and "operational streamlining," while the Kingdom's main stock index advanced amidst ongoing regional tensions. Saudi Paper Manufacturing Co. recorded a net profit of SR34.15 million during the first three months of the year, marking a 65 percent increase from the same period last year. This rise in net profit was directly linked to a significant improvement in gross profit, stemming from a 10 percent increase in sales and an improved profit margin.
Yanbu Cement Co. also announced a net profit of SR37.54 million for the first three months of 2026, a 25 percent increase compared to the corresponding period a year earlier. This jump in net profit was attributed to improved average selling prices, lower cost of revenues, and reduced selling and distribution expenses.
Who Profits from Surplus Extraction
The Saudi Tadawul All Share Index rose on Sunday, gaining 83.75 points, or 0.76 percent, to close at 11,115.07. The total trading turnover of the benchmark index reached SR4.87 billion ($1.29 billion). Across the market, 135 stocks advanced while 119 retreated, indicating concentrated gains for specific capital holders.
The Kingdom’s parallel market Nomu also saw gains, rising 9.09 points, or 0.04 percent, to close at 22,644.44. In this segment, 35 stocks advanced and 31 retreated. The MSCI Tadawul Index gained 13.59 points, or 0.92 percent, to close at 1,489.63.
Elm Co. emerged as the best-performing stock of the day, with its share price surging 5.40 percent to SR693.00. Middle East Paper Co. also saw its share price rise 5.33 percent to SR18.78. CATRION Catering Holding Co. recorded a share price surge of 5.03 percent, reaching SR73.05.
The Cost of Capital
The reported net profit increase for Saudi Paper Manufacturing Co. was further supported by lower general and administrative expenses. These reductions were explicitly linked to "cost optimization and operational streamlining," alongside a decline in selling and distribution costs during the period. For Yanbu Cement Co., the increase in net profit was also a result of reduced selling and distribution expenses, which the company attributed to lower export volumes, as well as lower financing costs.
While some capital saw significant gains, other firms experienced declines. 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. Saudi Paper Manufacturing Co. itself ended the session down 1.15 percent at SR60.30, despite its reported quarterly profit surge.
Capital and Regional Instability
The market's upward movement occurred as "fresh drone activity clouded peace hopes in the region." This backdrop of regional tensions did not prevent the accumulation of capital in key sectors. In the wider Gulf, Qatar’s QSI fell about 0.5 percent to 10,664, and 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. However, Egypt’s EGX30 rose about 1.9 percent to 54,629, demonstrating varied impacts of the current economic order across the region.