Tadawul Review:

Tadawul All Share Index (TASI) rebounded strongly on Tuesday adding 298 points (+2.6%) to take the index to 11,660 levels. The index move was the biggest since an increase of 2.8% on 31st March last year. TASI opened with a positive gap of 89 points and kept on increasing gradually to close near its high of 317 points. The rally was broad-based with all the sectors closing up recording an advance-to-decline ratio of 7.6 (182 stocks closed positive). Index heavyweights Banks (+3.5%) and Materials (+2.2%) led the charge adding 181 points to the index cumulatively. Al Rajhi Bank (+3.4%), SNB (+3.3%), and ARAMCO (+1.6%) were the major contributors to the index movement while Petro Rabigh and Sagr Insurance were the top gainers for the day (+10.0%). The trading activity posted a recovery with volume and value rising by 12% and 25% to 174mn shares and SAR6.5bn.

 

Market Wrap International:

The global equity indices broadly extended the nascent recovery into the second session on Tuesday with the U.S indices joining the recovery theme. The S&P  500 Index and Nasdaq rose 2.45 and 2.50% on reopening of the market after a holiday on Monday as investors looked for opportunities in a bear market notwithstanding major concerns on macro story. Meanwhile, analysts have come up with an upward revision in estimates for the probability of a recession in the U.S over the next 12 months. Energy, Consumer Discretionary and IT were the major drivers of the indices.

In Europe, the benchmark Stoxx Euro 600 Index partially pared intraday gains to close at +0.35%. Valuation remains a major trigger for the investors amid calls for central banks to do more in the fight of taming inflationary pressure. The latest recovery in the Euro region will be put to a litmus test later this week when the data on inflation and consumer confidence is due for release. 

Asia portrayed a similar picture with indices in Japan (Topix: +2.0%), Korea (KOSPI: 0.7%), and Taiwan (TAIEX: +2.3%) joining the recovery following recent underperformance. Hang Seng in Hong Kong (+1.9%) sustained its positive momentum even though Shanghai Composite (-0.3%) slid on Tuesday.