Tadawul All Share Index (TASI) fell on Wednesday, dropping by -135 points (-1.2%) to close at 11,304. TASI started the session on a negative note, opening 17 points lower than the previous close and continued to decline throughout the session, ultimately closing at the day's lowest point. Overall, 20 out of 21 sectors closed in the red zone, while 206 shares fell and 37 rose. Banks (-1.3%), Materials (-1.7%), and Utilities (-3.5%) sectors contributed the most to the index fall. Stockwise, Al Rajhi Bank (-1.4%), ACWA Power (-4.4%), and Saudi National Bank (-2.4%) were the major contributors. The trading activity witnessed a decrease in volume and value of -7% and -10%, respectively, to reach 182mn shares and SAR4.3bn in value traded.
Market Wrap International:
U.S. stocks suffered their steepest losses in a month on Wednesday, as concerns over the nation’s ballooning deficit rattled markets. A weak $16 billion Treasury auction reflected fading demand for U.S. debt, fueling a sharp rise in yields that pressured equities across the board. Small-cap stocks were hit particularly hard. Sectors like Real Estate (-2.63%), Health Care (-2.37%), and Financials (-2.05%) led the declines, as investors grew increasingly uneasy about the fiscal impact of a proposed budget bill. The Nasdaq declined by -1.4%, the S&P 500 fell by -1.6%, and the Dow Jones Industrial Average dropped by -1.9%.
European markets ended the day mixed, weighed down by a rise in UK inflation and fresh warnings from the European Central Bank about potential financial stability risks. The FTSE 100 increased by 0.1% and the DAX rose by 0.4%. In contrast, the Euro STOXX 600 dropped by -0.04% and the CAC 40 declined by -0.4%.
Asian markets traded mostly higher, shrugging off weak leads from Wall Street. Despite the overnight sell-off in U.S. equities, some investors continued to capitalize on the recent upward momentum seen across regional markets in recent weeks. The SHCOMP advanced by 0.2%, the Hang Seng increased by 0.6%, and the KOSPI advanced by 0.9%, while the Nikkei 225 dropped by -0.6%.