Tadawul Review:

Tadawul All Share Index (TASI) booked gains on Tuesday adding 244 points (+2.1%) to close at 11,629 levels thanks to rebound in Brent oil prices (+5.8% since its recent low of USD110/bbl). The session opened flat and hit its low during the first trading hour. However, bargain hunters soon stepped in boosting the market to close at its highest point. The majority of the sectors closed positive (16 out of 20) while the advance to decline ratio was a healthy 2.5x. The usual suspects i.e. Banks (+2.1), Materials (+2.5%), and Energy (+3.2%) sectors were responsible for the surge in the index surge. Amongst the stocks, ARAMCO (+3.3%), SNB (+3.4%), and BSFR (+6.0%) contributed the most to the index gains while Saudi Fisheries and Tihama Advertising were the top gainers for the day closing at their upper circuit of 10.0%. Overall, trading activity was subdued as volume and value traded dropped by 21% and 20% DoD to 150mn shares and SAR5.2bn. TASI has rebounded strongly from its recent low of 11,299 adding 372 points (+3.3%) in the last seven trading sessions.

 

 

 

Market Wrap International:

The global equity indices edged higher on Tuesday with the easing of COVID-19 curbs in China bringing energy prices back into the limelight. Bond yields in both the US and Euro region advanced for the second straight session ahead of an important data point on CPI in Europe.  In the U.S, the energy sector drove the S&P 500 Index higher though the rally in the tech names lost steam. Tech heavy, Nasdaq Composite Index slid 3.0% DoD and S&P 500 gained/declined by 2.0%

In Europe, valuation once again remained in the driving seat. Energy and Mining names lifted the benchmark Stoxx Euro 600 Index higher (+0.3%) for the third straight session. The ECB President once again reiterated plans to roll out new monetary tools to keep bond yields in the member countries under check as the central bank plans to raise policy rates next month. Yields on 10-year German Bunds jumped 10bps on Tuesday.

In Asia, indices sustained the momentum for the third day over the announcement of further easing of restrictions for foreign visitors in China. Hotel, Tourism, and Airline shares in China were the focus and pushed the Shanghai Composite Index higher by 0.9%. Tech names came under pressure. Indices in Hong Kong (Hang Seng: 0.9%), Japan (TOPIX: 1.1), and Korea (KOSPI: 0.8%) recorded daily gain while in India market remained flat (SENSEX: 0.0%) and Taiwan (TAIEX: -0.7%) closed lower.