TASI Rebounds, Yet Uncertainty Continues to Loom Over the Market

Last week, the Tadawul All Share Index (TASI) started with a sharp gap-down of nearly 4.8%, mainly due to rising regional war tensions. However, the market gradually recovered during the week and eventually closed about 0.6% higher on a weekly basis at 10,776.

Even after this recovery, the index still looks technically weak. It is trading below the important 11,000 resistance level, which means the market has not yet regained strong momentum. Unless the index moves clearly above 11,000, the chances of another downside move remain.

At the same time, oil markets have seen a strong rally. Brent Crude is trading around $91 per barrel, while West Texas Intermediate (WTI) is near $90, with prices jumping 30–35% within a few days due to geopolitical tensions and supply concerns. If disruptions continue, analysts believe oil could move toward $100 or higher.

For Saudi Arabia, there is some support because the country can reroute part of its crude exports through the East–West pipeline to the Red Sea, which has 1–2 million barrels per day of spare capacity. This helps maintain export volumes. However, the overall geopolitical risk could still keep equity markets under pressure, even though higher oil prices support government revenues.

Considering all these factors, the coming week could remain highly volatile for the Saudi market. Therefore, it may be prudent for traders to avoid taking fresh buying positions until the market shows clearer stability.