News
Saudi Arabia's benchmark index surged 3.4% to close at 9,762 points on Monday, 26 October, its largest one-day gain in more than 13 months and its first advance in six sessions. Most Gulf bourses closed higher alongside it, led by Saudi Arabia and Qatar, as easing regional risk sentiment drew buyers back into the market.
The rebound came one day after the Saudi index fell 2.7% on Sunday, its worst session in 18 months, and slipped below the 9,500 level for the first time since 2021. Monday's rally lifted it back above that threshold.
Saudi Arabia: miners and Aramco lead
Saudi Arabian Mining Co (Ma'aden) soared 7.3%, among the biggest contributors to the gain, while Saudi Aramco rose 1.7%. Aramco's move followed a separate announcement by the Saudi and Singaporean energy ministers that the company will begin storing crude oil in Singapore from the second half of 2027, aimed at strengthening the resilience of its regional supply chain.
The numbers across the region
- Saudi Arabia: +3.4% to 9,762
- Qatar: +2.8% to 8,852, its best day in more than five months, with every index constituent higher. Qatar National Bank climbed 3.9% and Qatar Islamic Bank added 2.4%.
- Kuwait: +2% to 8,940
- Oman: +1.1% to 7,358
- Abu Dhabi: +0.6% to 9,641, after a 1.2% fall in the previous session. Aldar Properties rose 1.5% ahead of its third-quarter results and Abu Dhabi Commercial Bank gained 1.6%.
- Dubai: +0.3% to 5,752, after a 1.4% drop in the prior session, helped by a 2.8% rise in toll operator Salik.
- Bahrain: -0.2% to 1,846
- Egypt: -1.7% to 48,417, the main decliner. Commercial International Bank lost 1.6% and Telecom Egypt fell 5.7%. The blue-chip index had already plunged 3.6% on Sunday, its steepest one-day drop since June 2025.
What it means for investors
The two-day swing — the worst Saudi session in 18 months followed by the best in 13 months — shows how quickly risk premiums are being priced in and out of Gulf equities. A single-session rebound driven by sentiment is not the same as an earnings-led recovery, and the index is still trading near multi-year lows. For Middle East portfolios that use Gulf blue chips as their regional benchmark, volatility of this size argues for position sizing that can absorb further sharp moves in either direction.
Banking stocks led the recovery in Qatar and Abu Dhabi, a reminder that Gulf banks — lifted by dollar-pegged rates and sound balance sheets — tend to attract the first wave of buyers when sentiment turns.
What to watch
Third-quarter earnings season continues across the Gulf, with Aldar Properties among the companies due to report. Investors will also be watching the US Federal Reserve's decision this week, which feeds directly into Gulf interest rates through the region's currency pegs, as well as oil prices after their recent volatility.
