Tadawul Review:

Tadawul All Share Index (TASI) sustained its positive momentum into the second session and rose by another 166 points (+1.3% DoD) to close at 12,822 levels. The positive momentum was visible from the start which was sustained till the session close. The index move was spurred by a strong recovery in oil prices to above USD120/bbl mark and movement in interest rate.  All three index heavyweight sectors, Materials (+2.5%) Banks (1.5%), and Energy (+0.8%) contributed to the index rise. Overall trading activity showed a strong recovery while the Advance to Decline ratio of 2:1 also remained healthy. The index is likely to test its key resistance levels around the 13,000 mark again. Commodity prices and latest moves in interest rate may support the investors sentiment in near-term.

 

 

 Market Wrap International:

The global equity indices edged higher on the back of renewed optimism on easing COVID-19 related curbs in China, and stronger than expected economic data. In the U.S, the S&P 500 and Nasdaq Composite started on an optimistic note on the back of positive newsflow from Asia but soon the momentum lost steam as the yield on the US 10-year bond bounced back above 3% mark. The indices close with a gain of 0.1-0.4% at session close. Tech and energy names were in focus again. AMZN shares surged +2.22% following the implementation of a 20-for-1 stock split, while TWTR fell -1.28% when Elon Musk, who waived due diligence, stated that the firm is in breach of their merger agreement by not providing information about fake accounts.

In Europe, the major indices started the week on a strong note as investors shrugged concerns on a fresh leadership challenge faced by the prime minister in the U.K and nearing the deadline of ECB’s plans to start rollbacking of quantitative easing measures. The benchmark Euro 600 index rose 0.92% with stocks in Germany, U.K and France were in the lead. Energy, Metal and tech names broadly led the markets.

Asian markets closed green supported by tech shares and a prevalent positive sentiment as investors welcomed Beijing’s economic reopening. Chinese and Hong Kong shares were the top gainers in the region as tech shares in Hang Seng (+2.7%) jumped on reports that the authorities are wrapping up their probe into Didi Global. In China, SH Composite closed up by 1.3% as Beijing rolled back COVID-19 restrictions signaling a return to normal. In Japan, transportation and restaurant stocks led the rally bolstering up Nikkei 225 by 0.6%. as reports surface that the government is reconsidering restarting the domestic travel subsidy campaign by this month. The Indian stock market, SENSEX, was down 0.2% while KOSPI was closed for a holiday on Monday.