Tadawul All Share Index End Wednesday Subdued on US Fed Day
The Tadawul All Share Index closed Wednesday 0.02% in the red as investors await the US Federal Reserve's latest monetary policy.Aside from the US Fed move, market watchers are also on the lookout for Chair Kevin Warsh's comments and clues about the next interest rate policy."Our US economists are also expecting that the Fed will hike today, as growth remains solid, the labour market has rebounded, and PCE inflation has demonstrated limited evidence of falling back to target. Moreover, forward-looking indicators suggest the inflation overshoot is likely to persist for some time. Nevertheless, with a hike mostly priced in by markets, the key question for them is how Chair Warsh and the latest dot plot frame the tightening cycle. Their view is that forward guidance is unlikely, but they think the median dot should show another rate increase this year, with several officials projecting more than that," Deutsche Bank Research said in a note.Also making waves during the session is the ongoing conflict between Saudi Arabia and the Iran-backed Houthi group. Markets raised concerns regarding the potential worsening of the global energy supply crisis if the war further escalates.On the corporate front, Arabian Pipes Co. (SASE:2200) entered into an 11-month contract to deliver steel pipe coating works for state-owned oil giant Saudi Arabian Oil Co. (SASE:2222), d/b/a Saudi Aramco. Shares of Arabian Pipes closed 2.32% lower, while Aramco ticked up 0.78%.Meanwhile, Umm Al Qura for Development and Construction Co (SASE:4325) shares closed 2.50% higher as it agreed to sell a 2,500-square-meter land plot to Rawajeh Real Estate for 168.9 million Saudi riyals.
