The Saudi stock market posted its biggest daily gain in more than two months, surpassing the 11,000-point mark and supported by a wave of institutional buying targeting banking-sector and leading-company stocks. This sudden rise, which lifted the main market index, TASI, by 1.13% to close at 11,078 points, shrugged off the absence of new fundamental catalysts and set an optimistic tone despite the mixed geopolitical landscape.

Trading value exceeded 4 billion riyals during the session, amid a notable broadening of buying activity, with 187 companies closing in positive territory compared with just 60 decliners. Heavyweight banking institutions led the momentum: Al Rajhi Bank, the stock with the greatest influence on the index, rose 2.1%, followed by Saudi National Bank with gains of 1.8%. Gains extended beyond the financial sector to the petrochemicals and energy sectors, with SABIC rising 1.31% and ACWA Power gaining 1.18%. Ma’aden recorded a notable 4% jump, while Saudi Aramco shares were little changed.

According to observers, the rally bears clear signs of proactive institutional liquidity inflows. Financial analyst Ahmed Al-Rashid noted that the index’s strongest pace of gains since June 9, despite the absence of significant disclosures, suggests that institutional portfolios rather than retail activity are driving the market. He stressed, however, that sustaining this momentum will require monitoring upcoming sessions. These inflows coincide with some stocks reaching attractive valuations. Financial expert Mohammed Al-Maimouni explained that the market is currently attracting liquidity seeking investment opportunities in companies trading below their fair value, particularly after the financial earnings-reporting season has ended.

Looking at the broader picture, clear selectivity is emerging within the banking sector, with some banks trading at price-to-earnings multiples below the sector average and near their book value. Against the backdrop of weak loan-portfolio growth recently, investors’ attention is turning to the course of monetary policy. Analysts point out that a potential cut in interest rates could support the profitability of some banks in a way that runs counter to conventional expectations, making the financial sector highly sensitive to upcoming economic data.

This outlook takes on added importance this week as markets await US inflation and spending data, along with the Jackson Hole symposium next Thursday, which could provide clearer signals about the US Federal Reserve’s direction. Meanwhile, geopolitical developments in the region—including maritime security and US political statements—remain a decisive factor in risk pricing.

From a technical perspective, TASI’s move above 10,850 points confirmed the uptrend, paving the way toward a target of 11,500 points as long as the index holds its current support. Among individual moves linked to corporate announcements, Saudi Ceramic Pipes captured attention with a maximum 10% gain, recording trading volumes roughly 750% above the 20-day average. The jump came in swift response to the company’s announcement of its intention to restructure its capital by reducing it by 70% to write off accumulated losses.