Saudi shares climb on easing oil fears

Saudi Arabia’s main stock index ended higher on April 8, with traders returning to equities after a sharp shift in regional risk sentiment helped lift Gulf markets. The benchmark Tadawul All Share Index closed at 11,339.00, up 251.46 points, while turnover reached about SAR8.4 billion on trading of roughly 407 million shares. The parallel Nomu market also advanced, gaining 344.31 points to 22,633.18, with trading worth about SAR26 million.

The move marked a strong rebound for the Riyadh market at a moment when investors were recalibrating positions after a burst of volatility tied to the confrontation involving Iran, the United States and Israel. Relief across financial markets followed indications of a temporary ceasefire framework and partial reopening of the Strait of Hormuz, a route central to Gulf energy exports. Reuters reported that Saudi Arabia’s benchmark rose 2.3 per cent that day as Gulf equities broadly rallied on hopes that the immediate threat to shipping and energy flows might ease, even if the wider crisis remained unresolved.

That change in mood mattered for Riyadh because the Saudi market had been trading under the shadow of energy disruption and geopolitical risk. Days earlier, investors had been grappling with reports of attacks on industrial and energy facilities in the Kingdom, including the wider fallout from missile and drone strikes claimed by Iran. State media and Reuters said the damage to several facilities cut oil production capacity by about 600,000 barrels per day and reduced throughput on the East-West Pipeline by about 700,000 barrels per day, underlining the scale of the disruption facing the energy sector and the wider economy.

For equity investors, the April 8 session reflected a familiar Gulf market pattern: when the worst fears over conflict and shipping disruption begin to subside, banking, property and broader cyclical shares tend to benefit first, while pure energy names can lag if oil prices retreat. That is what happened across the region. Brent crude fell sharply after the ceasefire announcement, helping cool inflation worries and improving the outlook for sectors that are hurt by elevated fuel and freight costs. Reuters noted that Saudi stocks rose even as energy shares, including Saudi Aramco, gave up some ground after earlier gains, suggesting that the market’s advance was driven less by crude strength and more by a relief-driven rotation into domestically exposed companies.

The Saudi market’s resilience also reflects a broader structural shift. Riyadh’s exchange is no longer viewed only through the prism of oil. Banks, telecoms, healthcare, consumer businesses and an expanding pipeline of listings on both the main market and Nomu have deepened the market’s profile and widened its investor base. Nomu’s advance on April 8 added to that picture. Though far smaller in value than the main board, the parallel market has become an increasingly visible venue for growth companies and smaller issuers seeking access to capital. Its rise on the day signalled that risk appetite was not confined to heavyweight blue chips.

Still, the gains did not remove the fragility underpinning sentiment. The same week brought contradictory signals: a relief rally in equities, a steep fall in oil, and fresh reminders that infrastructure in the Gulf remained exposed. Reuters reported on April 10 that oil posted its biggest weekly decline since 2022 as traders looked ahead to talks aimed at securing a more durable ceasefire, but also noted that the attacks on Saudi facilities had already cut output and left shipping through Hormuz operating at a near standstill. For Saudi-listed companies, that mix means the immediate bounce in share prices may not yet amount to a settled trend.

What stands out is how quickly Riyadh’s market absorbed a severe geopolitical shock and shifted back towards bargain-hunting once the threat of a wider supply seizure appeared to recede. The April 8 close, while still below levels seen before the sharp swings in energy and regional security, suggested investors were willing to price in a measure of stability even without firm evidence that the crisis had passed. The trading figures also pointed to broad participation rather than a thin technical rebound, with hundreds of millions of shares changing hands across the session.