Tadawul Review:

Tadawul All Share Index (TASI) picked up from where it left off yesterday and managed to add a further 263 points (+2.3%) to close at 11,555 levels. In the last two sessions, the index has added 392 points or +3.5%. Today’s session witnessed the resurgence of trading activity with volume and value traded rising by 52% and 62% to 163mn shares and SAR5.9bn respectively. The majority of the sectors (14 of 20 sectors) closed positive with an advance to decline ratio of 3.7x. Banks (+2.5%), Materials (+3.7%) and Energy (+4.1%) sectors cumulatively contributed 202 points. Amongst the stocks, ARAMCO (+4.2%), Al Rajhi (+2.3%), and SNB (+2.7) pushed the index up the most. The top performers for the day were from the Materials sector namely Ma’aden and Sipchem both closing at their upper circuit. Outlook on oil prices and the ongoing second-quarter result season is likely to guide the market in the near term.

 

 

 Market Wrap International:

The global equity indices sustained the recovery into the new trading week as investors digest the latest comments from the Fed official and the promise of more monetary support by the Chinese central bank to support economic activity. In the U.S, the markets witnessed a late selloff as investors’ fear of recession amplified with Apple the latest company to slow down hiring. The benchmark S&P 500 Index and Nasdaq Composite closed down by 0.8% each.

In Euro, the Stoxx Euro 600 Index rose (+0.9%) for the second straight session with value stocks in the focus ahead of the much-awaited ECB announcement due on upcoming Thursday. Euro gained more ground against the USD on Monday amid the ongoing political crisis in Italy and further boosted investors’ confidence. Mining and energy stocks led the show on Monday.

In Asia, equity indices jumped on Monday in a perfect synchronous move. The latest statement from the Chinese central bank, expressing commitment to introduce more monetary policy measures to support the economy and the statement from the Fed after the Asian markets closed on Friday spurred the rally. Recovery in energy and commodity prices also added to positive sentiment. Major equity indices in the region jumped in the range of 1.2-2.7%. Markets in Japan were closed for a holiday.