Saudi Arabia's Stock Market Faces Challenges, Qatar Surges High

The stock markets in Saudi Arabia and Qatar displayed contrasting performances on Sunday. While the Saudi index closed lower due to losses in the financial sector, the Qatari index reached a three-month high, continuing its upward trajectory for the month.

In Saudi Arabia, the benchmark stock index experienced a 0.4% decline, despite marking its first monthly gain after three consecutive months of losses. This drop was primarily influenced by losses in the country's two largest lenders, Al Rajhi Banking And Investment Corporation and Saudi National Bank.

On a positive note, Saudi Arabia's state oil company Aramco witnessed a 0.7% increase following the signing of contracts for expanding its Jafurah gas field and main gas network. Furthermore, newly listed companies like Al Taiseer Group Talco Industrial and Modern Mills Company emerged as the top gainers on the index.

Although the Saudi index advanced by 1.8% in June, it experienced an overall 5.6% decline in the second quarter. In contrast, the Qatari benchmark index saw a marginal 0.1% increase, supported by the industrial and financial sectors.

Gainers in the Qatari market included Qatar National Bank and Industries Qatar, contributing to the index's 6.9% gain in June, the highest monthly increase this year. The Qatari index reached an intraday high on Sunday, reaching its peak level since March.

While Saudi Arabia's stock market faced challenges due to losses in the financial sector, Qatar's market surged to a three-month high, driven by gains in key industries. Investors will be closely monitoring these divergent trends to assess future market movements in the region.