Saudi Arabia’s stock market slumped for the third day in a row on Tuesday, January 6, as investors weighed the impact on oil prices amid heightened geopolitical risks.
Oil prices fell back after ending higher in volatile trade on Monday following the capture by US forces of Venezuelan President Nicolas Maduro in a weekend raid.
Tadawul All Share index slumps 2.5% in 3 days
Against this backdrop, Saudi Arabia’s Tadawul All Share (TASI) index fell to the day’s low of 10,291.24, down 0.32% from its last closing level of 10,325.20. During the three days, the index has lost almost 2.44%.
TSAI: Technical outlook
Commenting on the technical outlook for the index, Anshul Jain, Head of Research at Lakshmishree, said that TASI has remained locked in a wide 10,000 to 13,000 range for nearly 55 months and is now drifting toward the lower end of this long-standing band.
“Momentum across timeframes lacks strength, and participation has not shown any signs of institutional support near current levels. As the index approaches range support, downside risk remains elevated if demand fails to emerge decisively. Any bounce is likely to be corrective and capped near declining averages. A decisive breakdown below the lower boundary would mark a major structural failure and open room for a deeper leg lower, while only a reclaim of key moving averages would neutralise the bearish bias,” he cautioned.
