Eight Weeks of Losses: Is TASI Finally Nearing a Bottom?

Eight consecutive weeks of losses. The lowest weekly close since 2021.

The Saudi stock market is facing one of its toughest periods in decades.

The Tadawul All Share Index (TASI) fell another 4.1% last week, closing near 9,696 and extending its losing streak to eight consecutive weeks, its longest since 1994.

But after such a sharp decline, an important question arises:

Is the market approaching a turning point, or is more pain ahead?

Why 9,500 Matters Now

The index is approaching a crucial support zone around 9,500–9,400.

This is the level investors should watch closely.

If buyers step in here, TASI could attempt a short-term recovery. After eight weeks of losses, a bounce would not be surprising.

But let’s be clear: a bounce does not necessarily mean the downtrend is over.

The market still needs to show signs of genuine strength before we can talk about a lasting recovery.

Two Scenarios for the Week Ahead

📈 Scenario 1: The market finds support

If TASI holds above 9,400–9,500 and buying interest improves, a recovery toward 9,900–10,000 could be possible.

A sustained move above 10,000 would be an early sign that selling pressure is easing.

📉 Scenario 2: Support breaks

If the index decisively falls below 9,400, the risk of further weakness will increase.

That is why this support zone matters so much. The market needs to defend it.

What About Oil and Regional Tensions?

Geopolitical uncertainty and renewed concerns over regional energy flows are adding to investor caution.

Higher oil prices may benefit energy stocks, but that does not automatically mean the broader Saudi market will recover. Uncertainty and risk aversion can still weigh on investor sentiment.

What Should Investors Do?

For now, protecting capital should take priority over chasing a rebound.

Avoid aggressive fresh buying while the index continues to make lower highs and lower lows.

Instead, watch for two things:

• Does TASI hold the 9,400–9,500 support zone?
• Can it reclaim 9,900–10,000 with stronger buying activity?

These signals could help investors judge whether the market is stabilizing or remains under pressure.

The Bottom Line

TASI is deeply under pressure, but the next move will depend on how the market reacts near 9,500.

A short-term bounce is possible. A sustained recovery, however, still needs confirmation.

One question for Saudi investors:

After eight consecutive weeks of losses, would you consider buying near 9,500, or would you rather wait for TASI to move back above 10,000?

Share your view in the comments. 👇