Tadawul Review:

Tadawul All Share Index (TASI) increased by 124 points (+1.0%) to end the week just shy of the 12k mark (11,988 level). TASI has managed to add 825 points (+7.4%) during the week closing each session in the green zone and in the process taking the index to its highest closing since 14th June. Thursday’s rally saw 19 out of 20 sectors closing up with 156 shares rising and only 44 shares declining (advance to decline ratio: 3.54x). Banks (+1.3%), Materials (+1.6%), and Utilities (+3.4%) sectors drove the market up by 94 points cumulatively. Stocks-wise, Al Rajhi (+1.7%), SNB (+1.8%), and ACWA Power (+4.1%) pulled the index up the most while Alujain was the biggest gainer for the day rising by 7.6%. The trading activity saw a decline of 23% and 29% in volume and value traded which stood at 167mn shares and SAR5.6bn respectively. Going forward, the TASI’s direction is likely to be determined by the ongoing result season and global oil demand concerns.

 

 

Market Wrap International:

The global equity indices broadly edged higher on Friday a day after a surprise rate hike by the ECB and the release of more data in the U.S highlighting a slowdown in economic activity. Indices in the US weakened on Friday with tech stocks leading the decline. A surprise drop in ad revenue for Snapchat and upward revision in losses by Twitter dragged other online-revenue-linked tech stocks as well. The release of economic data (U.S Industrial production) further added to the negativity. Meanwhile, the yield on a 10-yr government bond dropped by another 10bps to close at 2.77%.

In Europe, the benchmark Stoxx Euro 600 Index closed the week on a positive note and advanced by another 0.3% on Friday with Real Estate and Utilities in the lead. The decision by the ECB a day earlier to raise the benchmark rate by 50bps sustained recovery in Euro, and some sign of rapprochement between Russia and Ukraine has lifted the sentiments. This also added to the market's optimism on smooth energy supply during the peak winter season.

In Asia, equity indices delivered a mixed performance on Friday though overall moves on either side remained quite muted. The tech names in China were once in the focus on valuation appeal and newfound optimism following the recent wrapping up of a regulatory probe into Didi. Property stocks in China however continued receiving bad press and were under pressure and dragged Shanghai Composite by 0.1%. Indices in Japan (TOPIX: +0.3), Hong Kong (Hang Seng: +0.2%), and India (Sensex: +0.7%) recorded daily gains.