TASI shed 2.1% in August to close the month at 10.7k points, after swinging between a high of 10.97k and a low of 10.68k, according to market data. The benchmark’s total market cap hit SAR 8.9 tn by the end of August, with SAR 91 bn in value traded across 5.8 bn securities and 9.9 mn transactions.

The culprit: The decline is largely caused by the global dip in oil prices, which are down nearly 9% since the start of the year, creating a noticeable drag on most sectors, financial market strategist at CFI Financial Group Sarah Alyasiri told EnterpriseAM Saudi.

The telecoms sector was the only gainer YTD, rising 8.1%. The sector’s defensive nature and strong demand for data and digital services have made it a safe haven for investors, Alyasiri said, adding that companies like STC have reinforced this confidence, reporting a 15.7% y-o-y jump in net income for 2Q.

ALSO- Banks (-2.7%) and consumer retail (-3.3%) relatively outperformed the TASI index, despite their decline. The resilience of consumer retail stocks — including retail, leisure, and luxury goods — demonstrates the spending power of local consumers, supported by strong employment, high disposable income, and the government’s initiatives aimed at stimulating domestic demand and creating a spending-oriented economy, Alyasiri said.

Other sectors were not so lucky: Utilities (-41.8%), media and entertainment (-40.6%), and software and services (-22.9%) were the worst hit, underscoring the breadth of the sell-off across Tadawul’s sectoral indices.

Top gainers, laggards: Development Works Food topped the gainers in August, climbing 19.7%, followed by Ades (+17.6%) and Thimar (+14.2%). United Cooperative Assurance was the month’s worst performer, dropping 25.1%, followed by Nice One (-19.6%) and Obeikan Glass (-18.8%).

For investors, patience is key: The market has been mostly moving sideways over the past three years, showing resilience despite the recent turbulence, Alyasiri added. TASI is currently trading near a critical support level of 10k points, and a breakout from its sideways pattern could take time, she said.

In the meantime, she stressed the importance of diversification across sectors to shield portfolios from volatility. Many investors have already rotated into fixed-income instruments such as government bonds to capture attractive yields, while others are turning to alternative assets, including gold, real estate, and private funds, to hedge against risks.

The Kingdom mirrored a regional slump, which saw the ADX slipping 2.7% and the DFM losing 4%, while Egypt’s EGX30 bucked the trend, rising 2.8% to outperform its Gulf peers.

THE OUTLOOK- Some sectors are better positioned for a faster rebound, according to Alyasiri. Banks and financial services should benefit from a more stable monetary policy environment, while energy and materials could recover quickly if oil prices rise or global demand strengthens. Meanwhile, consumer and retail segments are expected to improve as confidence picks up, supported by heavy government spending on large-scale entertainment and tourism projects, as well as quality-of-life initiatives, she said.

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