Tadawul Review:

Tadawul All Share Index (TASI) closed the session on Wednesday on a positive note, extending its gains to the fourth day by adding 103 points (+0.9%) to close at 11,864 levels which is TASI’s highest closing in a month. The index opened with a positive gap of 49 points carrying its upward momentum well into mid-day to touch a high of 234 points before profit-taking pared gains to merely 20points. Thereafter, dip buying once again elevated the market helping the index to close on a positive note. Trading activity continued to be impressive remaining above its 3-month average for the second consecutive day. Volume and value traded grew by 14% and 11% DoD to 217mn shares and SAR 7.9bn. The majority of sectors (16 out of 20) closed in green led by Banks (+1.5%), Utilities (+3.4%), and Telecom (+0.8%) sectors. MIS and Al Abdullatif Ind. were the top gainers for the day while Al Rajhi (+3.1%) and ACWA Power (+4.5%) contributed the most to the index gains.

 

 

Market Wrap International:

The global equity indices showed divergent moves on Wednesday as all eyes are set on the two crucial rate decisions by the central bank due later this week. Following a stellar daily performance on Tuesday, the benchmark indices in the U.S were up following better-than-expected quarterly results. The S&P 500 Index closed up +0.6% following a volatile session with 7 sectors out of 11 closing in the green led by consumer discretionary and information technology sectors. Similarly, the tech-heavy Nasdaq Composite also saw a major boost rising by +1.6%.

In Europe, a 3-day rally in the benchmark Stoxx Euro 600 Index ran out of steam and the index dropped by -0.2% just a day ahead of the announcement of the policy decision by the ECB. The ongoing energy supply crunch amid the highest temperature in the region and the drop-in oil prices weighed on the investor’s sentiments.

 

In Asia, markets painted a completely different picture on Wednesday relative to past sessions as the indices made a strong rebound. A strong closing of markets in the U.S, easing of concerns on regulatory risk for Chinese tech stocks, and dollar weakness set the stage for a positive performance by almost all major indices. The equity indices in Japan (TOPIX: +2.3%, Nikkei: +2.7%) outperformed gains of 0.3-1.2% in the rest of the region. Tech stocks in China were the major gainers after the news flow of the possible completion of a probe by the Chinese authorities in one of the tech companies. The Bank of Japan is set to announce its monetary policy decision on Thursday.