Tadawul Review:

Tadawul All-Share Index (TASI) closed Wednesday s session ‎up by +86 points (+0.8%) to close at 10,935 levels, TASI ‎opened the session negatively down by -5 ‎points from the ‎previous close, then started to rise until it closed at the ‎highest level for today. In general, 14 out of 20 sectors closed ‎in the green zone, while 135 ‎stocks rose and 79 fell. Bank ‎‎(+1.0%), Materials (+0.5%), and Telecommunications (+1.3%) ‎sectors contributed the most to the index's rise of +52 points. ‎Stock-wise, AlRajhi Bank (+0.8%), Aramco (+0.8%), and Saudi ‎National Bank (+0,9%) contributed most to the rise ‎of the ‎index. The trading activity witnessed a decline in volume and ‎value both by -9% respectively, to reach 153mn shares and ‎SAR4.7bn in value traded. The index is likely to come under ‎fresh bout of volatility for two reason (i) mixed global ‎economc data and equity indices performance, (ii) resistiance ‎around psycholigial level of 11k mark, and (iii) extended Eid ‎holiday ahead.   ‎

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Market Wrap International:

The global equity indices underwent a renewed volatility with ‎economic data and minutes of the Fed's recent meeting on interest ‎rate producing opposing sentiment. A softer than expected headline ‎CPI data in the U.S inspired a rally in key equity gauges as the data ‎suggests room for the Fed to further tone down its stance on future ‎interest rate hike. However, the sentiment turned sour on the release ‎of details of Fed’s meeting on interest rate. The details hinted at a ‎higher possibility of recession in the U.S economy. The S&P 500 and ‎Nasdaq Composite indices surged 0.6% and 0.9% respectively in ‎intraday trading. The indices gave gains to close with -0.4% and -0.9 ‎losses. Only four out of eleven sectors on the S&P 500 were green. ‎Treasury yields in the U.S fell by 4-6bps on the announcement to of ‎CPI data ‎

In Europe, the benchmark Stoxx Europe 600 Index extended its gain ‎into the second session and jumped 0.1% supported by real estate ‎and automobiles. The country level indices closed in green and rose ‎by 0.1-0.5%. ‎

 

In Asia, equity indices broadly moved in a narrow range of 0.1-0.4% ‎ahead of release of CPI data in the U.S. Hang Seng was a sole ‎outlier in the region with a drop of 0.9%, dragged by Tencent and ‎other tech names. The market was rife wit speculations that ‎Tencent’s largest shareholder, Prosus has sped up offloading of ‎shares in the company. Equity indices in Japan were up 0.6-0.8%, ‎recording gains for the second straight session on media reports of ‎Mr. Warren Buffet’s focus on stocks, particularly in banks, listed in ‎Japan.‎