Tadawul All-Share Index (TASI) closed higher for the third consecutive session, rising +68 points (+0.6%), to close above 11,000 points at 11,033 levels, which is the highest closing level since November 20, 2022. TASI had opened the session positively, up 15 points from the previous close, and continued to rise to surpass the 11,000-point barrier and complete the session above it. In general, 17 out of 20 sectors closed in the green zone, while 151 stocks rose and 55 fell. Banks (+0.8%), Materials (+0.4%), and Energy (+0.8%) sectors contributed the most to the index's rise of +43 points. Stock-wise, AlRajhi Bank (+1.2%), Aramco (+0.8%), and Maaden (+3%) contributed most to the rise of the index. The trading activity witnessed a decrease in volume and value by -4% and -8%, respectively, to reach 159mn shares and SAR4.8bn. Today will mark the last trading session during the holy month of Ramadan. The index has increased 6% during the month.
The ongoing Mar-end result season will likely gain more traction in the next few sessions and may help divert market's attention from economic data, recession fears and geo political tension. A number of companies are due to release the earnings next week. However, for the investors the health of banks’ balance sheet and future guidance from the management, in particular, remain crucial. In the U.S, the economic data next week is concentrated on housing (housing start, home sales and labor market (jobless). Following release of softer-than-expected inflation and retail sales data last week, investors are likely to closely track the data for reaffirmation of market view that Fed’s interest rate hikes are having the desired effects.
In Europe, the minutes of recent ECB meeting on interest rate hike, CPI data for the region and U.K are important updates for the market. The latest comments from important ECB officials have strongly hinted at the continuation of current rate hike cycle with an increase of another 50bps in the upcoming meeting.
In Asia, the economic data from China (GDP, Industrial Production) and Japan (CPI) will likely be in the limelight. A strong data in China will substantiate market optimism over recovery in economic activity post lifting of sanctions. Meanwhile, Bank of Japan will conduct its first policy meeting under the new governor next week. Analysts have ruled any possibility of change in current ultra-loose monetary stance of the bank.