Tadawul Review:

Tadawul All-Share Index (TASI) ended its two-day losing streak and rose on Tuesday by +94 points (+0.9%) to close at 10,280. TASI started the session negatively, down by -26 points, and continued its decline in the first half of the trading hours, as it reached its intraday low of -135 points. However, TASI managed to rebound in the last half of the trading hours and started building positive momentum to close at its intraday high. In general, 13 out of 20 sectors rose, while 139 stocks advanced and 69 fell. Banks (+1.1%), Materials (+2.3%), and Utilities (+1.5%) sectors contributed the most to the index's rise of +78 points. Stock-wise, Al Rajhi Bank (+3.7%), SABIC (+2.9%), and SABIC Agri-Nutrients (+6.2%) contributed most to the rise of the index. The trading volume activity declined by 17% DoD to reach 137mn shares, while the trading value increased by 5% DoD to reach SAR4.3bn. TASI is likely to move sideways in the near-term given lack of triggers. 

 

 

 

Market Wrap International:

The global equity markets were roiled by yet another surprise moves on monetary policy on Tuesday. The Bank of Japan (BoJ) joined the bandwagon of central banks which have delivered hawkish decisions since last week. BoJ announced the doubling of the cap for the movement of 10-yr government bonds to 50bps which came as a major surprise for the market participants. Market had expected the central bank to maintain a dovish monetary policy. The decision has had an immediate impact on asset classes with yields on the U.S treasuries rising by 1.7-3.15% while the US dollar index dropped by 0.7% as Yen strengthened against USD. Yields on the 10-yr government bond in Japan spiked by 16bps to 41bps, close to the cap announced by BoJ. In the U.S, the benchmark S&P 500 Index fell 0.4% before recouping its losses to close little changed.

In Europe, the Stoxx Euro 600 Index was under pressure and retreated further by -0.4%. The surprise decision from BoJ and the latest updates from China added to pressure. Automobiles & parts and Technology were the major underperformers for the session.

 

In Asia, Nikkei 225 and TOPIX were down by 2.5% and 1.5% respectively. Financial stocks moved higher while assets with long duration came off In Japan. Equity indices in China (Shanghai Composite: -1.1%) and Hong Kong (Hang Seng: -1.3%) were also under pressure due to rising COVID-19 cases in China. Outside Japan, TAIEX (-1.8%) underperformed the most with negative news flow on key export markets in China and Japan‎.