Saudi Arabia’s benchmark Tadawul All Share Index (TASI) ended Wednesday’s session on March 12, 2026, with a modest 0.3% decline, closing at 12,680 points amid trading volumes of SAR 8.2 billion. The performance came as a cautious tone gripped global markets, while defensive sectors continued to attract institutional flows.

Main Index Performance

TASI registered a limited retreat after three consecutive sessions of gains, in a corrective move analysts consider healthy following the index’s 2.1% rise the previous week. Year-to-date, TASI is up 4.8% for 2026.

The parallel market index Nomu closed 0.6% higher at 27,450 points, supported by notable activity in technology and small-cap stocks. Total shares traded on the main market reached 312 million across 428,000 transactions.

Sector Map: Winners and Losers

Top-Performing Sectors

• Banks (+0.8%): Led gains on expectations of strong Q1 earnings. Al Rajhi Bank rose 1.2% to close at SAR 108, while Saudi National Bank added 0.9%. The sector benefits from elevated net interest margins as rates remain relatively high
• Insurance (+1.1%): Continued its strong run as demand for mandatory insurance products grows. Bupa Arabia gained 2.3%, while Tawuniya added 1.5%. Analysts expect gross written premiums to grow 15% in 2026
• Telecommunications (+0.5%): Benefited from stc’s announcement of expanded 5G services across the region. stc shares closed at SAR 52, up 0.7%

Underperforming Sectors

• Materials (-1.2%): Weighed down by falling global petrochemical prices. SABIC shares fell 1.5% to close at SAR 82, its lowest level in two months. Growing Chinese competition is pressuring the sector’s profit margins
• Energy (-0.7%): Despite oil prices trading above $85 per barrel, Aramco dipped 0.4% to SAR 30.5 on profit-taking after a 5% rally over the prior two weeks
• Real Estate (-0.9%): Declined on concerns over a slowdown in project execution in some areas, though momentum remains positive for NEOM and Red Sea developments

Most Active and Impactful Stocks

Top Gainers

• Bupa Arabia: +2.3% (announced a major government insurance contract)
• Dar Al Arkan: +1.8% (launched a new residential project in Riyadh)
• Al Rajhi Bank: +1.2% (positive quarterly earnings expectations)
• Almarai: +1.0% (expansion into export markets)

Top Decliners

• SABIC: -1.5% (petrochemical price pressures)
• Ma’aden: -1.3% (profit-taking after rally)
• Emaar The Economic City: -2.1% (project delay concerns)
• Anaam Holding: -1.8% (preliminary results below expectations)

Foreign Investor Flows

Qualified foreign investors registered net selling of SAR 180 million in the March 12 session, continuing the net-sell trend that began at the start of the week. Since the beginning of 2026, net foreign purchases have reached approximately SAR 3.2 billion, compared with SAR 5.8 billion in the same period of 2025.

This decline reflects global caution toward emerging markets, though analysts note that long-term institutional flows remain positive. Foreign ownership in the Saudi market stands at approximately 11.3% of total market capitalization.

Factors Influencing the Session

Several factors shaped Saudi market performance on March 12, 2026:

• Oil Prices: Brent crude traded above $85 per barrel, supported by Middle East supply tensions. This level supports the Saudi budget, which requires a price near $80 to achieve fiscal breakeven
• Monetary Policy: The Saudi Central Bank (SAMA) kept its benchmark rate at 5.25%, in line with the U.S. Federal Reserve. Markets expect a cut in the second half of 2026
• Vision 2030: Mega-projects under Vision 2030 continue to support infrastructure, tourism, and entertainment-related sectors, with government spending exceeding SAR 1.1 trillion in 2026
• Economic Data: Non-oil GDP growth of 5.2% in Q4 2025 confirmed the success of economic diversification efforts

TASI Technical Analysis

Technically, TASI is trading within an ascending channel since the start of 2026. Key levels:

• First Support: 12,580 points (20-day moving average)
• Second Support: 12,400 points (lower boundary of the ascending channel)
• First Resistance: 12,800 points (February 2026 high)
• Second Resistance: 13,000 points (major psychological barrier)

The MACD indicator remains in positive territory, supporting a continued uptrend over the medium term.

Outlook: What to Watch

As Q1 2026 earnings season approaches, attention turns to several key catalysts:

• Bank Earnings: Analysts expect banking sector profits to grow 8-12% year-over-year
• Aramco Results: The company’s performance will serve as a crucial indicator for Q2 market direction
• OPEC+ Decisions: The upcoming April meeting will determine the course of production policy
• IPOs: Several companies in the technology and healthcare sectors are preparing to list

Overall, TASI remains well-positioned with strong fundamentals, but global volatility calls for tactical caution. Analysts recommend focusing on value stocks in the banking and telecom sectors while monitoring any correction as an opportunity to build positions in growth names.