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Tadawul Shares End Week Muted as Saudi Arabia Slashes Interest Rates

MT Newswires·12/11/2025 08:17:14
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08:17 AM EST, 12/11/2025 (MT Newswires) -- The Tadawul All Share Index ended the week flat on Thursday at 0.09% in the red as the Saudi Central Bank followed the US Fed's move to cut interest rates by 25 basis points. "The Federal Reserve's divided decision to cut rates today underscores a central bank that is easing cautiously while signaling a potential pause. For commodity markets, the message is clear: monetary policy is no longer a dominant driver of price direction. The Fed is cutting, but only reluctantly, and its projections show limited easing ahead despite a still-uncertain labor market and inflation that remains above target," Rystad Energy Chief Economist and Global Director of Market Analysis Claudio Galimberti said. "Overall, today's decision adds a mild macro tailwind but does not alter the medium-term landscape. Commodity prices will react more to fundamental signals and geopolitics, shifts in the next few months than to the Fed's tentative path." Oil prices are in the red as of 4 pm Saudi time, as concerns for crude supply disruptions also arose after the US seized a sanctioned oil tanker in Venezuela. Back at home and on the corporate front, Hamad Mohammed Bin Saedan Real Estate (SASE:9648) entered an 11-month construction deal for 18 warehouses. The residential and commercial buildings development company's shares closed 5% higher.