Tadawul All Share Index (TASI) rose for the 8th consecutive day on Tuesday, rising by 86 points (+0.7%) to close at the 12,123 level. TASI opened the session positively by +13 points then continued to rise gradually until the end of the session. Overall, 17 out of 20 sectors closed in the green zone, while 137 shares rose and 79 fell. Banks (+1.1%), Food and beverages (+4.5%), and Insurance (+2.8%) sectors contributed the most to the index rise. As for stocks, Saudi National Bank (+4%), Riyadh Bank (+4%), and Almarai (+5.6%) were the major contributors. The trading activity witnessed a rise in volume and value by +47% and +53%, respectively, to reach 367mn shares and SAR9.9bn in value traded.
In the U.S., the S&P 500 finished its first day of trading in 2024 down by -0.6%, witnessing 5 out of 11 sectors falling. Similarly, The Nasdaq Composite saw a 1.6% decline as market participants anticipate a total of 150 basis points of easing throughout the year, with the first 25 basis-point rate cut almost fully priced in for March. Further, oil prices surged on Tuesday due to escalating tensions in the Red Sea.
European stock markets opened higher on Tuesday as traders bet on central banks cutting rates in 2024. Oil prices also experienced a rise in prices as a result of the recent naval clash in the Red Sea. The Stoxx Europe 600 ended down by -0.1% and the FTSE 100 index was negative by -0.2% as Eurozone inflation figures due later this week will provide clues about monetary policy.
Chinese stocks recorded their worst start to a year since 2019, as investor sentiment took a hit after reports on Sunday showed China’s factory activity shrank in December to the lowest level in six months. Additionally, an accelerated slide in domestic home sales added more fuel to concerns about the economic outlook. The Hang Seng index ended negatively by -1.5% and the Shanghai Composite index also saw a decline of -0.4%. Markets in Japan were closed in Tuesday.