Saudi Market Opens with Mixed Performance: Telecom Sector Supported by STC

The Saudi stock market (Tadawul) opened today with mixed performance, showing a positive trend in the telecom sector supported by the share of Saudi Telecom Company (STC), contrasted with fluctuating movements in the energy sector amid selective trading and investor caution.

The telecom sector recorded relatively positive performance, driven by an increase in STC's share price following the company's announcement of a memorandum of understanding with HUMAIN to establish a joint venture for developing and operating data centers dedicated to artificial intelligence in Saudi Arabia.

STC's share rose to 42.24 SAR, achieving gains of about 0.09%, with active trading exceeding 212,000 shares. The support for the stock came after the company disclosed that the project would be carried out through its subsidiary, Center3, with an operational capacity of 1 gigawatt, enhancing STC's position in the digital infrastructure and advanced computing sector. The anticipated long-term positive financial impact of the project and HUMAIN's connection to the Public Investment Fund also boosted investor sentiment towards the stock.

In the same sector, Mobily rose to 65.00 SAR, increasing by 0.62%, while Zain Saudi Arabia climbed to 10.40 SAR, up approximately 0.29%. Meanwhile, Integrated Telecom Company dropped to 87.60 SAR, a decrease of about 0.45%.

Conversely, the energy sector showed mixed performance with differing stock movements. Saudi Aramco slightly increased to 23.62 SAR, with a gain of 0.08%, while Petro Rabigh rose to 6.94 SAR, achieving gains of about 0.73%. On the other hand, Arabian Drilling fell to 101.90 SAR, down approximately 0.97%, and Ades decreased to 17.50 SAR, down by 0.34%, while Al-Masafi dropped slightly to 52.35 SAR. Conversely, Bahri recorded limited gains, rising to 28.96 SAR, with an increase of 0.49%.

The performance of the Saudi market at the start of the session reflects a cautious balance, with liquidity concentrated in stocks with clear catalysts, primarily STC following its announcement of a strategic project in AI data centers, contrasted with volatility in the energy sector influenced by global oil price movements and varying risk appetite among investors.