Saudi stocks drop 2.3 percent amid global sell-off
Saudi stocks declined for the fourth consecutive time, recording their lowest closing since 2021, driven by a global wave of selling that affected both Gulf and international markets. This was amid increasing selling pressures and decreasing demand within the local market. The "TASI" index fell approximately 2.3%, closing at 9,696 points, with all sectors experiencing downturns. This trend reflects a broad retreat towards risk aversion globally, as stock prices generally declined while U.S. Treasury bonds rose, making them more attractive compared to equities. Despite the price drops, stock valuations slightly improved in terms of yields; however, weak liquidity and declining demand are exacerbating the decline. The ongoing risks related to profit and return forecasts are heightened by rising yields on fixed-income instruments in global markets.
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