Tadawul All-Share Index (TASI) declined on Thursday for the third consecutive day by -195 points (-1.7%) to close at 11,212 levels, the lowest close since September 29, 2022. The decline in global market indices, fluctuation in Brent crude oil prices and stubbornly high SAIBOR rate (12-M at all time high) led to the decline in TASI on Thursday. The index opened the session negatively at lower levels, and continued its decline for the rest of the session. In general, all sectors closed in the red, while all stocks fell except for 17 stocks declined. Banks (-1.9%), Materials (-1.9%), and Utilities (-3%) sectors contributed the most to the decline in the index by a total of 123 points. Among stocks, Saudi National Bank (-4%), Al Rajhi Bank (-1.4%), and Saudi British Bank (-2.3%) pulled the index down the most. The volume of trading activity witnessed an increase of +8% to reach 129mn shares, while the trading value remained at the same levels to reach SAR4.8bn. TASI is likely to react positively to the events in international markets and strong performance of major indices over the weekend.
The global equity indices paint a completely different picture following a modestly below-expected CPI print in the U.S on Thursday and easing of COVID-19 restrictions in China on Friday. An actual CPI reading of 7.7% vs consensus expectation of 7.9% produced a rally in major risk assets (bonds, equity, previous commodity) with a significant drop in US dollar index (down 3.8% in two days) and knock-on impact major currencies (JPY, Euro, Pound). In the U.S markets, the S&P 500 Index moved higher by 0.9% on Friday following a massive +5% gain on Thursday. Energy and Consumers Discretionary were the major outperformers.
In Europe, the benchmark Stoxx Euro 600 Index was little change (+0.1%) on Friday as excitement over better-than-expected CPI data in the U.S was tamed by concerns over latest economic forecasts by European Commission and near-term inflation drag.
In Asia, markets celebrated the be double blessings in the form of strong market performance in the U.S overnight along with movement in major currencies of the region, and latest announcement from China. The HangSeng Index in Hong Kong (+7.7%) stole the show followed by TAIEX (+3.37%) in Taiwan, KOSPI (+3.3%) in Korea and Nikkei 225 (+3%) in Japan.