Saudi Arabia’s stock market has dropped about 2.5% in the past three days, as worries over oil prices and a gloomy outlook for 2026 weigh on investors.
Market Overview
The Tadawul All Share Index (TASI) fell to 10,291.24, down 0.32% from the previous close of 10,325.20. Over the three‑day period the index is down roughly 2.44%.
Oil Prices and Geopolitical Tension
Oil prices slipped after a brief rise on Monday when U.S. forces captured Venezuelan President Nicolás Maduro. While the U.S.–Venezuela clash is not expected to cut crude supplies right away, any move by the U.S. to lift its embargo on Venezuelan oil could add more supply and push prices lower.
Analyst Views
Most analysts see crude oil prices staying weak through 2026 because of growing supply and soft demand. In Saudi Arabia, the non‑oil private sector is still growing, but expansion slowed to a four‑month low in December. Some see this slowdown, possible monetary easing in 2026, and upcoming earnings reports as possible sparks for a market bounce.
Technical Outlook
Technical expert Anshul Jain notes that TASI has been stuck in a wide 10,000‑13,000 range for about 55 months and is now sliding toward the lower end. All major moving averages are pointing down, acting as resistance. Momentum is weak and there is little sign of big investors stepping in at current levels.
- If the index breaks below the lower range boundary, a deeper decline could follow.
- A clear recovery would need the price to climb back above the key moving averages.
What This Means for Retail Investors
With oil prices expected to stay under pressure and the market showing technical weakness, investors should be cautious. Watching for signs of stronger demand or positive earnings surprises could help decide whether to hold, add, or reduce exposure.
Disclaimer
Remember, this is just my take on the situation, not a prediction. Do your own research or talk to a certified financial advisor before making any investment moves, as market conditions can change quickly.