Tadawul Review:

Tadawul All-Share Index (TASI) closed down by -23 points (-0.2%) on Tuesday's session to close at 10,497 levels. TASI had started the session positively, up +19 points from the previous close, and it continued to rise in the first hour of trading as it recorded its intraday high by +40 points, but after that TASI was exposed to selling pressures and started falling for the rest of the session. In general, 9 out of 20 sectors closed in the red zone, while 80 stocks rose and 124 fell. Food and beverages (+3.4%), Materials (+0.3%), and Telecom (+0.4%) sectors contributed to the stability of the index, while Banks (-1.1%), Real Estate (-0.8%), and Health care (-0.5%) were a drag on the index. Among stocks, Saudi National Bank (-1.6%), Al Rajhi Bank (-0.5%), and Riyad Bank (-2.5%) pulled the index down the most. The trading activity also witnessed a decline in the volume and value of trading by 33% and 16%, respectively, to reach 128mn shares and SAR3.8bn. The index may continue to consolidate around current levels. The Dec-end results of petrochemical companies may prove to be a trigger for the market in near-term.  

 

 

 

Market Wrap International:

The much-awaited CPI data in the U.S released on Tuesday came in-line with market expectations and draw a confused response from the market. The treasury yields gyrated between gains and losses across tenures and settled with nominal gains of 0.1%|2.4% at session close. while the dollar index edged down. The equity indices in the U.S also fluctuate through the session and closed with minor change. The S&P 500 was down 0.03% while Nasdaq Composite jumped 0.6%. 3 out of the 11-industry listed in S&P 500 closed higher.

In Europe, the Stoxx Europe 600 Index recorded gains for the second straight session supported by strong earnings and the lack of surprise in CPI data in the U.S. The index pared most of its intraday gains and managed to close with a 0.1% jump at the session close, supported by the communication and real estate sectors. The country level indices moved in divergent directions.

 

In Asia, key indices changed direction again and rose by 0.3% | 0.8%% driven by results and tech stocks. This is also reflected in the performance of tech-heavy indices in the region. The appointment of BoJ governor drew a positive reaction in the equity markets in Japan with TOPIX and Nikkei 225 rising by 0.6/0.8%. India’s SENSEX rose by 1.1%, further decoupling from the troubled Adani Group’s stocks.