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The Saudi Stock Market Index (TASI) declined by 0.9% to 11,013 points on Wednesday, with a trading turnover of SAR 5.7 billion. The drop followed mixed regional and global market sentiment, with investors reacting to ongoing geopolitical tensions in the Red Sea and concerns over oil prices. The decline was broad-based, with key sectors like banking and real estate underperforming due to profit-taking after recent gains.
This correction in TASI raises concerns about near-term volatility in the Saudi equity market, particularly as investors assess the impact of external factors on the kingdom's economic outlook. Traders may focus on whether the index can stabilize above critical support levels, such as 11,000 points, to avoid further downward pressure. The low trading volume relative to recent sessions also suggests cautious positioning among market participants.
For Gulf investors, the decline highlights the importance of monitoring global crude oil prices and regional central bank policies. The Saudi Arabian Monetary Authority's (SAMA) upcoming monetary policy decisions and any updates on the country's fiscal 2024 budget could provide directional cues. Traders should also watch for potential rebounds in cyclical sectors if risk appetite improves in the coming weeks.
