16 Hrs
Source:
الاقتصادية
Saudi stocks and bonds show limited rebound
The Saudi stocks have ended a three-session decline streak, with the "TASI" index rising by 0.1% to reach 10,878 points. This increase was strongly supported by a 1.8% rise in "Al Rajhi" stock, which contributed a 24-point boost. The rebound came after a sharp drop caused by rising bond yields, as trading showed that the market absorbed part of the pressure but still suffers from weak liquidity and a lack of broad participation across stocks and sectors. Support was mainly concentrated in the banking sector, particularly "Al Rajhi." Additionally, current market valuations are approaching a sensitive zone, especially with the ten-year bond yields climbing to around 5.8%. This reduces the yield spread that supports stocks and puts downward pressure on their prices unless there is an improvement in profit growth expectations. Despite the partial recovery of the market index, market indicators and trading activity suggest it remains under pressure. The market is in a wait-and-see phase pending clarity on monetary policy directions and the impact of yields on stock valuations. Investors are closely monitoring bond yield movements in the coming period to determine whether the market will regain balance or continue to decline.
Size: 120%Text Size
Notice: This Is an AI-Generated Summary
Comments (0)