Saudi Stocks Gain on Cooling US Inflation, Regional Concerns

Saudi stocks saw an upward trend as investors weighed the impact of lower US inflation against fresh regional security concerns and a strong earnings report from Smile Care.

The July inflation data showed headline inflation slowing to 3.4% from 3.5% in June, while core inflation dropped to 2.5% from 2.6%. ING, a Dutch bank, suggested that the easing of US inflation and the fiscal deficit are key drivers for US Treasuries, with the possibility of further easing through the remainder of 2026.

This matters because US Treasury yields often set the baseline for global borrowing costs, influencing equity valuations beyond America. In Saudi Arabia, individual stocks continued to perform well, with Smile Care jumping 8.63% after reporting an 87.1% rise in attributable profit on 50.4% sales growth for the six months ended June 30th.

The trading session was also influenced by reports of attacks on vessels in the Gulf of Oman and the Red Sea, but Saudi equities remained focused on global rate math rather than local events.