Tasi overtakes Fed without spike in gravity
After the decision to raise U.S. Federal Reserve interest rates to a range of 3.75-4%, Saudi stocks remained stable, as the market's expectations of no major surprises were largely confirmed. The TASI index closed up by 0.1% at 10,792 points, fluctuating during the session between 10,760 and 10,808 points. Trading volume surged by 51% to approximately 5.27 billion SAR, driven by changes in FTSE Russell's indices rather than new investment inflows. The market remains down about 2.1% for the week, nearly 8.5% below the 52-week high, with no significant change in earnings forecasts or valuations. Rising bond yields reinforce the need for higher returns from equities. Overall, the monetary authority has removed the element of surprise regarding monetary tightening, but the risk of re-pricing remains, especially if bond yields continue to rise or if there are no upward revisions in corporate earnings.
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