Tadawul All-Share Index (TASI) ended Wednesday's session down -259 points (-2.5%), breaking the 10,200 level and settling at 10,185, which is its lowest closing level since May 9, 2021 (10,228). TASI opened the session at the same level as before, but was soon exposed to strong selling pressure and declined significantly for the rest of the session, as it closed at its intraday low. In general, all sectors except Commercial & Professional Svc closed in the red zone, while 41 stocks rose and 155 fell. Banks (-3.9%), Materials (-2.4%), and Energy (-1.3%) sectors were the major drags on the index and contributed a total of 195 points. Stocks-wise, Al Rajhi Bank (-4.9%), Saudi National Bank (-3.1%), and Aramco (-1.2%) pulled the index down the most. The trading activity witnessed a decline in volume and value by 14% and 26%, respectively, to reach 115mn shares and SAR3.7bn. The negative momentum in the index is showing no sign of relenting. Possibility of the index testing 10k psychological levels is high.
The global equity indices sustained the negative momentum for the third straight session on Wednesday with investors taking the opportunity to take some bets off ahead of the much-anticipated FOMC decision next week and the disappointing economic data in China. The benchmarks in the U.S flipped flopped between gains and losses through the session but managed to close with small loss at the session end. The latest economic data has forced investors to revisit the views on terminal interest rates in the U.S and the path of future interest rate changes. Communication Services and Information Technology were the major losers for the day.
In Europe, the Stoxx Euro 600 Index dropped by -0.6%, recording losses for the fourth straight session. Investors took a cue from the movement of U.S indices and the below-expected data in China. The country-level indices also moved in tandem with the regional benchmark.
In Asia, the country level indices were influenced by weak trade data in China, showing the impact of COVID-19 lockdowns in the country and slow-down in the global demand. The announcements of easing of quarantine measures and COVID tests by the authorities stirred a muted response from investors. The indices in Hong Kong (HangSeng: -3.2%) and China (Shanghai Composite: -0.4%) were down on profit taking and weak economic data. TAIEX (-0.7%) and KOSPI (-0.4%) also recorded modest declines while SENSEX and TOPIX were largely unchanged for the session.