Gulf Stocks: Tadawul TASI, DFM, ADX and QSE Daily — 2026-10-09
Saudi Arabia’s Tadawul All Share Index (TASI) plummeted 1.57% to its lowest close since January, driven by renewed supply fears and banking sector pressure. While Dubai and Abu Dhabi markets remained relatively stable, Aramco’s CEO issued a stark warning that rebuilding global oil inventories could take two years amid ongoing geopolitical tensions.
Gulf Stocks: Tadawul TASI, DFM, ADX and QSE Daily — 2026-10-09
Top developments
Saudi TASI Hits Lowest Close Since January
On October 8, the Saudi Tadawul All Share Index closed at 10,376 points after a sharp 1.6% decline (166 points), marking its lowest level since January. The drop was attributed to two main factors: heightened geopolitical risks affecting supply chains and significant selling pressure from major banking stocks. This volatility contrasts with earlier in the week when the index had briefly regained ground to close at 10,590 on October 6.
Aramco CEO Warns of Two-Year Inventory Rebuild
Saudi Aramco’s CEO stated on October 5 that replenishing global oil inventories could take up to two years as the US-Iran conflict continues to squeeze supplies. This warning underscores the persistent risk premium in oil prices and suggests that energy stocks may remain volatile. The statement coincides with data showing Gulf oil exports have recovered to over 81% of pre-conflict levels, yet market sentiment remains fragile due to stalled US-Iran talks and Strait of Hormuz shipping disruptions.
Gulf Markets Mixed Amid Geopolitical Risks
While Saudi Arabia suffered steep losses, other Gulf markets showed mixed performance in early October. On October 6, Dubai’s DFM remained flat at 5,907, Abu Dhabi’s ADX fell slightly by 0.2% to 9,993, and Qatar’s QSE declined 0.3% to 9,259. By October 8, most Gulf bourses closed lower again, reflecting broader regional anxiety over supply routes and diplomatic stalemates. The divergence highlights how specific local factors, such as Saudi banking sector adjustments, are impacting individual indices differently.
Local view
Local Arabic media outlets highlighted the severity of the Saudi market's correction. Independent Arabia reported that the "two reasons" for the drop were the widening pressure on liquidity and specific weakness in heavyweights like Al Rajhi Bank and Saudi Aramco. The outlet noted that trading volumes rose to 3.6 billion SAR (approx. $960 million) during the downturn, indicating panic selling or rebalancing by institutional investors. Conversely, Al-Akhbarna pointed out earlier in the week that TASI had briefly climbed above 10,589 points due to positive momentum in Al Rajhi and Aramco trades, despite falling oil prices, suggesting a brief disconnect between equity sentiment and commodity moves.
Context & numbers
- TASI Close: 10,376 points (Oct 8), down 1.6% daily. Lowest since January 2026.
- Trading Volume: Recent sessions saw volumes between 3.6 billion SAR and 4.2 billion SAR ($960M - $1.12B).
- Foreign Ownership: Total foreign holding value stood at $123.07 billion (SAR 461.52 billion) as of the end of August 2026.
- Interest Rates: Following the Fed's September hike, SAMA maintains a repo rate of 4.50% and reverse repo rate of 4.00%, impacting borrowing costs and bank profitability.
- Other Indices: Dubai DFM ~5,907; Abu Dhabi ADX ~9,993; Qatar QSE ~9,259 (Oct 6 data).
On the radar
- IPO Pipeline Stagnation: Fitch Ratings noted that UAE and Saudi IPOs have "all but dried up," with global bankers increasingly looking to Egypt, Turkey, and India for fees rather than Gulf listings.
- Secondary Market Growth: A nascent secondary market is emerging in the Gulf as a new route for liquidity for investors and founders, potentially offering an alternative exit strategy given the IPO drought.
- Geopolitical Watch: Investors are closely monitoring US-Iran talks; any breakthrough could ease supply fears, while further escalation would likely depress equities and spike oil prices.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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