For years, the 10,000-point mark was an important psychological barrier for investors in the Saudi stock market. But Tuesday, October 20, 2026, brought a different picture: the main index fell below that level, posting its lowest close in more than five years.

What happened?
The main market index, “TASI,” closed Tuesday’s session at 9,952.06 points, down 1.69%—a loss of around 172 points in a single session—and its lowest closing level in more than five years.
During the session, 33 companies and publicly traded real estate investment funds hit their lowest prices ever, including flynas, Jahez, MBC Group, Saudi Tadawul Group, Nice One, SACO, L’azurde, and several REITs.


First: What is TASI, and what is a record low?
TASI is the Saudi Exchange’s main market index. It tracks the performance of companies listed on the Main Market, and its rise or fall reflects the overall direction of share prices.
A record low is the lowest price a stock has reached since it was listed on the market. One important detail: several of the companies that hit record lows were listed in recent years, including flynas and MBC Group. This means they have a short trading history, and their record low is the lowest price since their relatively recent listing.
REITs are publicly traded real estate investment funds that own income-generating properties, such as shopping malls and offices, and distribute most of their profits to unit holders.


How did the market get here?
The decline did not happen in a single day. In 2025, TASI ended the year at 10,491 points, down around 12.8%—its biggest annual percentage loss since 2015.
At the start of 2026, the market tried to recover, and by the end of the second quarter it was up around 3% year to date. But the decline resumed in August, with the index losing more than 10% from its peak that month, leaving it down around 5% since the start of 2026.


What factors are weighing on the market?
The report did not cite a direct cause for Tuesday’s decline, but economic reports have linked the market’s recent weakness to several factors, most notably:
Geopolitical tensions: October reports linked market movements to geopolitical developments affecting energy markets and supply flows, including tensions in the Red Sea and the Strait of Hormuz.
Weak liquidity: TASI opened 2026 with a session that recorded its lowest trading value in seven years. Trading values in several October sessions ranged from SAR 3.5 billion to SAR 3.9 billion, compared with around SAR 16.4 billion in the busiest sessions of 2025.
Corporate profits: Aggregate profits at listed companies fell 5% in the first nine months of 2025, although they rose 5% when Aramco was excluded.
A heavy pipeline of listings: Fifteen companies were listed on the Main Market in 2025, directing some liquidity toward new IPOs.


Why isn’t the market rising as oil prices climb?
It may seem surprising: oil prices topped $100 a barrel in October, while Saudi stocks fell. The reason is that the market is made up of more than just oil companies. It also includes banks, petrochemicals, retail, real estate, telecommunications, and other sectors, many of which do not benefit directly from higher oil prices. In addition, the geopolitical tensions that push oil prices higher can also make investors in the region more cautious.


What does this mean for investors?
Declines are a normal part of financial market cycles, and the Saudi market itself has seen significant swings in recent years: it fell 17% in 2015, rose 30% in 2021, fell 7% in 2022, and rose 14% in 2023. Past performance does not guarantee future results, however. Investment decisions depend on each investor’s goals and risk tolerance, and it is advisable to consult a licensed financial adviser before making any decision.


Bottom line
Breaking below 10,000 points and recording 33 record lows in a single session reflect a difficult period for the Saudi market, with local factors such as weak liquidity and a heavy pipeline of listings intersecting with external pressures, most notably geopolitical tensions. The question on investors’ minds remains: Is the market nearing its bottom, or is the decline not over yet?


Disclaimer: This article is for informational purposes. It aims to explain the news in a clear, accessible way and does not constitute an investment recommendation to buy or sell. The information presented is drawn from published news sources and has been adapted and simplified; it does not represent an official position or statement by any organization. This information may be updated after publication, so readers are advised to consult official sources for full details.

Disclaimer: This material was prepared under the supervision of a “Yamama Insights” editor with the assistance of artificial intelligence tools for financial education purposes. It is not a recommendation to buy, sell, or hold any security, and it reflects the views of its authors, not those of the platform.