Saudi stocks came within touching distance of 10,000 points on Tuesday, extending their rally for a second day as investors welcomed renewed diplomatic efforts to end the regional conflict.
The Tadawul All Share Index (TASI) climbed about 2.3% to close at 9,986 points, after briefly crossing 10,000 during the session. Saudi Arabian Oil Company (Aramco) gained 1.9%.
Two days, nearly 6%: Together with Monday's 3.4% jump, the benchmark has recovered sharply from Sunday's close of 9,438 points, its lowest in five years.
What's driving the rally? Saudi, Turkish and Pakistani officials agreed with Iran on Monday to continue discussions on regional security. Brent crude also eased toward $115 a barrel on Tuesday morning as traders weighed the possibility of de-escalation.
The catch: The 10,000-point mark is an important psychological threshold, but it offers no guarantee of further gains. The rally is still driven largely by expectations of a diplomatic breakthrough rather than an actual ceasefire.
The next test is whether TASI can close above 10,000 and stay there, particularly if negotiations fail to deliver concrete progress.
