TASI turnaround reflects stronger economic fundamentals: Jadwa

The 7 percent recovery by the Tadawul All Share Index (TASI) after dipping to 6-month-lows of 7,500 points in mid-September reflects stronger fundamentals of Saudi Arabian economy, Jadwa Investment noted in a report on Tuesday.

TASI improved marginally during September, rising by 1 percent month-on-month. This, however, disguises volatile trading during the month, the report added.

“In the first half of September, TASI slipped to a six month low. Since then, the index has risen by 7 percent, underlying the stronger fundamentals of the Kingdom vis-à-vis other EMs and reflecting improved sentiment linked to multi-year high oil prices,” it maintained, adding that Saudi equity market has been improving more so than most other regional indices.

“Traded volumes dipped to year-to-date lows during the month, but we expect these to recover as confidence likely further improves in the months ahead,” Jadwa Investment report added.