Tadawul Review:

Tadawul All-Share Index (TASI) ended its three-day winning ‎streak on Wednesday, declining -129 points (-1.2%) to close ‎at 10,532 levels. The decrease in Brent oil prices was the ‎major cause of the TASI index's decline for the Wednesday ‎session, where trading activity was recorded in the range of ‎‎184. TASI opened the session negatively but then rose to ‎reach its intraday high in the middle of trading hours, ‎recording +37 points. TASI then began its gradual rise for the ‎rest of the trading hours. In general, all sectors declined ‎except for the consumer services sector, while 36 stocks rose ‎and 177 fell. Banks (-1.5%), Materials (-0.9%), and Energy (-‎‎1.5%) sectors were the major drags on the index and ‎contributed a total of -85 points. Stocks-wise, Aramco (-‎‎1.6%), Al Rajhi Bank (-1.4%), and Saudi National Bank (-2%) ‎pulled the index down the most. Trading activity also ‎witnessed an increase in volume and value by +67% and ‎‎+16%, respectively, to reach 242mn shares and SAR4.5bn. ‎TASI is likely to recoup some if its losses in the near-term ‎with oil prices recovering after the close of TASI. Year-end ‎results remain a major driver for the stocks.

 

 

 

Market Wrap International:

The global equity indices extended the New-Year rally into the ‎third session on the back of growing optimism over China’s ‎economic re-opening theme and Dec-end result season. The ‎impact of monetary policy surprises towards the end of Dec-‎‎22 which had softened the valuation and increased bond yields ‎‎, has started waning across asset classes. In the U.S the ‎benchmark S&P 500 and Nasdaq Composite Indices moved ‎higher by ‎‏0.8‏‎ and ‎‏0.7‏‎%. The minutes of the last FOMC meeting ‎has proved to be non-event for the market as secondary yields ‎continue pricing lower peak rates than the rates guided by ‎Fed.‎

In Europe, the Stoxx Euro 600 Index rallied for the third ‎straight session and closed the day with ‎‏1.4‏‎% gains. Retails, ‎Consumer and Food & beverages were the major drivers while ‎energy stocks were the major drag. The drop-in yields and ‎easing of fears of energy shortages are proving major impetus ‎to markets. The county level-indices also exhibited similar ‎optimism and were up 0.2-2%.‎

In Asia, China remains the major sentiment booster for the ‎region with a slew of fresh measures aimed at supporting the ‎property developers announced on Wednesday. Besides, the ‎approval for Ant Group to raise equity for its consumer arm ‎also aided to positive sentiment. The tech stocks were in ‎demand and pushed HangSeng (+3.2%) higher. Similarly, value ‎buying in KOSPI emerged and pushed the index higher by ‎‏1.7‏‎%. Japan remained the sole outlier on the back of growing ‎concerns over recent currency moves and its impact on ‎corporate earnings (TOPIX:-1.2%).‎

 

 

 

 

 

 

 

 

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