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الاقتصادية
TASI braces for volatile week as bond yields stay steady
The Saudi stocks, known as Tadawul, are facing a volatile week due to rising bond yields and their impact on market valuations, especially amidst oil price fluctuations and anticipation of important US economic data. Long-term yields have become more sensitive to market changes, joining factors like inflation and oil prices, which amplifies their influence on stock valuations. Additionally, the narrowing gap between market returns and bond yields makes equity markets more susceptible to fluctuations, amid rising financing costs driven by increased SIBOR rates. There are also expectations of downward pressure on profitability if these rising yields persist for an extended period, although profit forecasts remain stable for now.
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