Saudi Stocks Fall for a 5th Straight Day and Egypt Drops 3.6% as Houthi Clashes Rattle Sunday Markets

 

Direct answer: Saudi Arabia's Tadawul All Share (TASI) closed 2.65% lower at 9,438.50 on Sunday, October 25, 2026 — its fifth straight loss — while Egypt's EGX 30 fell 3.56% to 49,234.35, as investors sold Middle East stocks after the Saudi-led coalition said it had intercepted drones and missiles over Riyadh amid escalating clashes with Yemen's Houthi forces.

What happened on Sunday

Middle East markets trade on Sunday, and this Sunday they opened the week deep in the red. The TASI's 257.36-point fall followed Thursday's 2.32% decline and extended its losing streak to five sessions; across those five sessions the index has dropped 7.37% from its October 18 close, according to The Edge's market wrap, which compiles the exchanges' own published closes. In Cairo, the EGX 30 dropped 3.56% with only 10 stocks rising against 209 decliners — near-uniform selling, not a slide in a few heavyweights. It was Egypt's second heavy fall in a row after Thursday's 3.41% drop, taking the two-session loss to 6.85%, although the index remains 17.7% higher for the year.

The selling was regional but not universal. Oman's MSX 30 fell 1.37% for a seventh straight decline, Bahrain's All Share slipped 0.17% for an eighth straight loss, and Jordan's ASE index fell 0.52%. Kuwait bucked the trend, snapping a seven-session slide with a 0.47% rise, and Qatar's QE Index edged 0.05% higher to 8,615.48. Saudi Aramco, the region's biggest stock, fell about 1.1%.

Why it's blowing up

The trigger was security, not earnings. Reuters reported early Sunday that most Gulf bourses fell as investors were unsettled by intensifying clashes between Yemen's Iran-allied Houthis and the Saudi-led coalition, with the TASI down 1.1% in early trade before losses deepened into the close. Golden Ten reporting, carried by Cointime and Jinse Finance, said the Saudi-led coalition announced it had intercepted several drones and missiles over Riyadh and southern Saudi Arabia — and described the TASI's drop as its worst intraday performance since April 2025 at one point in the session.

Egypt got hit for a second reason: it is being pulled toward the conflict. The same reporting said Egypt's parliament is expected to vote on Monday, October 26, on whether to authorize the armed forces to provide support to Saudi Arabia against the Houthis if requested. Cairo's currency moved with its stock market — the Central Bank of Egypt's average dollar rate reached 55.7762 pounds to buy on Sunday, leaving the pound about 0.93% weaker than Thursday's fixing after a 1.7% slide that day. When a country's stocks, currency and parliament all move on the same story in one session, the story trends — and that is what happened here.

Key facts

• Saudi Arabia (TASI): closed -2.65% at 9,438.50 — fifth straight loss, -7.37% across the five sessions.
• Egypt (EGX 30): closed -3.56% at 49,234.35 — 10 gainers vs 209 decliners; -6.85% over two sessions.
• Catalyst: the Saudi-led coalition said it intercepted drones and missiles over Riyadh and southern Saudi Arabia amid escalating Houthi clashes.
• Aramco: fell about 1.1% on the day.
• Egyptian pound: official average rate 55.7762 per dollar on Sunday, ~0.93% weaker than Thursday.
• Elsewhere: Oman -1.37% (7th straight fall), Bahrain -0.17% (8th), Jordan -0.52%; Kuwait +0.47% and Qatar +0.05% rose.

What's next

Monday brings the region's full board back: Dubai and Abu Dhabi return carrying Friday declines of 1.44% and 1.17%, and Egypt's parliament vote will tell investors whether Cairo's role in the conflict is about to deepen. On Wednesday, October 28, the Federal Reserve announces its rate decision — for the dollar-pegged Gulf currencies, that is effectively their rate decision too, so regional markets will be trading the Fed as well as the conflict headlines. This post reports what happened and why markets reacted; it is not financial advice, and nothing here is a recommendation to buy, sell or hold any security.

Sources

• The Edge — Middle East Market Wrap, 25 October 2026 (Sunday closes)
• Reuters via TradingView — Gulf bourses slip as Houthi-Saudi clashes rattle investors
• Cointime / Golden Ten — Yemen conflict escalates, Saudi and Egyptian stock markets decline
• KuCoin / Jinse Finance — Evening brief, October 25

FAQ

Why did Saudi stocks fall on Sunday, October 25, 2026?

The TASI fell 2.65% to 9,438.50 after the Saudi-led coalition said it intercepted drones and missiles over Riyadh amid escalating clashes with Yemen's Houthi forces, extending the index's losing streak to five sessions.

How much did Egypt's EGX 30 fall, and why?

The EGX 30 fell 3.56% to 49,234.35, with 209 stocks declining against 10 gainers, as regional tensions escalated and Egypt's parliament prepared to vote on authorizing military support for Saudi Arabia; the Egyptian pound also weakened to about 55.78 per dollar.

Did every Middle East market fall on Sunday?

No. Oman, Bahrain and Jordan fell, extending long losing streaks, but Kuwait's All-Share rose 0.47% to snap a seven-session slide and Qatar's QE Index edged 0.05% higher.

What should markets watch next this week?

Egypt's parliamentary vote on Monday, October 26, the return of Dubai and Abu Dhabi trading, and the Federal Reserve's rate decision on Wednesday, October 28, which also steers the dollar-pegged Gulf currencies.