Tadawul All-Share Index (TASI) closed higher for the third consecutive session, rising +41 points (+0.4%) to close at 10,766 levels, which is the highest closing level since the beginning of the year. TASI made a muted start on Monday with a slight increase of +3 points. The index flipped flop with gains and losses before making a definite direction and saw gradual rise to end the session at its intraday high. In general, 10 sectors out of 20 closed in the green zone, while 92 stocks rose and 110 fell. Banks (+0.5%), Energy (+1.6%), and Telecom (+0.6%) sectors contributed the most to the index's rise of +35 points. Stock-wise, Aramco (+1.7%), Al Rajhi Bank (+1%), and Alinma Bank (+1.2%) contributed most to the rise of the index. The trading activity witnessed an increase in volume and value by 30% and 11%, respectively, to reach 128mn shares and SAR3.4bn. The index is likely to maintain its course amid range bound move and limited intraday volatility. Strong oil prices and Dec-end earnings season provide an encouraging support for the index to make further recovery.
The global equity markets edged higher on Monday amid closure of most Asian markets for trading on Monday on account of New Year Holidays. Commodity prices remained higher on the prospects of strong demand outlook on re-opening of the Chinese economy. In the U.S, the benchmark S&P 500 and Nasdaq Composite Indices managed to sustain the rally into the second session and closed higher by 1.2% and 2%. The treasury yields in the U.S recovered to pre Dec-CPI levels. Result season and corporate news flow have had a limited impact on the overall index. 10 out of 11 listed industrial sectors were positive on the S&P 500 Index.
In Europe, the benchmark Europe 600 Index closed with a minor gain of 0.5% with investors focusing on the statement from the ECB officials on the likely path of benchmark rate in the region and Dec-end results. Country level indices too moved in the same direction and were up 0.2% | 0.5%.
In Asia, barring Japan and India, all other major markets in the region were closed for the day. In Japan, the benhmark TOPIX and Nikkei 225 were up 1% and 1.3% (driven by tech names) while in India, SENSEX jumped 0.5% (Dec-end results).