Tadawul All-Share Index (TASI) remained choppy in Thursday's session and managed to close with little change (-0.9pts) to settle at 11,142 levels. TASI underwent an initial nervous trading period after a modestly positive opening. However, TASI was trading in a range of 75 points between high and low but importantly maintained the support levels above the 11,000 level. In general, 9 out of 20 sectors closed in the red zone, while 113 stocks rose and 90 fell. Banks (-0.2%), Utilities (-1.6%), and Telecom (-0.4%) sectors were the major drags on the index. Stocks-wise, Saudi National Bank (+1.3%), SABIC (+1.1%), and Bank Al-Bilad (+0.6%) contributed the most to the stability of the index. The trading activity witnessed a decline of 18% and 26%, respectively, to reach 108mn shares and SAR4.2bn. The drop in oil prices by 1.6% in the last two sessions in international market is concerning and will likely keep sentiment muted. TASI may once again retest its support levels just below the 11k mark.
The global equity indices moved higher amid latest comments from central banks’ officials and optimism regarding more economic support measures in China. FedSpeak has worked to dilute the excitement over the soft CPI data last week as treasury yields jumped by 5-8bps across tenures and renewed concerns son economic slow-down sent commodity prices further down. In the U.S, the S&P 500 Index jumped by 0.7%, while the Nasdaq Composite remained unchanged at session close despite facing intraday volatility. All but two industrial sectors (energy and Communication Services) listed on S&P 500 moved higher with Utilities and Real estate leading the gains.
In Europe, the Stoxx Euro 600 Index closed higher by 1.2%, capping fifth weekly gains. The index gains came despite a relatively hawkish tone by the ECB President on the interest rate outlook and fiscal stimulus by various governments which are part of the union. Soft energy prices and optimism over China reopening have lowered near-term inflation concerns during peak winter season. The country level indices also advanced on Friday (FTSE: +0.5%, DAX: +1.2%).
In Asia, major equity indices took a breather and moved largely sideways to close with minor to modest losses (0.1-0.6%). Tech names were particularly in focus across the region. Equity indices in the region have greatly benefited from China-focused positive updates (COVID-19 restrictions, fresh relaxation measures for the property sector and reduced geopolitical risk). Outlook on currency has stabilized given the anticipation of a less hawkish Fed.