Tadawul All Share Index (TASI) ended the last day of March positively on Thursday, rising +87 points (+0.8%) to close at 10,590 levels, capping the monthly gains at +487 points (MoM: +4.8%, YTD: +1.1%). TASI had opened the session positively and continued to rise for the rest of the trading hours until it closed at its intraday high. In general, 13 out of 20 sectors closed in the green zone, while 146 stocks rose and 63 fell. Banks (+1.8%), Materials (+0.7%), and Health care (+1.3%) sectors contributed the most to the index's rise of +78 points. Stock-wise, Al Rajhi Bank (+1.7%), Saudi National Bank (+2.2%), and Riyad Bank (+2.4%) contributed most to the rise of the index. The trading volume activity declined by 13% DoD to reach 219mn shares, while the trading value increased by 9% DoD to reach SAR6.2bn. TASI is likely to sustain its current momentum with strong oil prices, supportive moves in global equity markets and optimism around the end-Dec result season.
The global equity markets closed a volatile month on a positive note amid encouraging economic data across the three major centers. In the U.S, the reading for Fed’s favorite inflation gauge of 5%, core PCE deflator, came in below consensus expectation and provided an impetus to both bond and equity markets. The FedSpeak also supported the market moves. The treasury yields in the U.S eased while commodity prices made further recovery. The S&P 500 and Nasdaq Composite closed with sizable gains of 1.4% and 1.7% with tech & growth stocks in the lead.
In Europe, the headline inflation in the Europe region shrank from 8.5% in Feb to 6.9% though the core element which strips out food and energy components, remained sticky. The investors also took a cue from positive economic data in Asia, The benchmark Stoxx Europe 600 Index jumped 0.7% and partially erased monthly losses. Country level indices too moved in the same direction.
In Asia, economic data in China and corporate restructuring plans of Alibaba and Jd.com remained key drivers in the region. The latest data on service and manufacturing sector (PMI) for Mar-23, alongside data on consumer spending, industrial output and investment for the first two months, support the thesis of a strong recovery in economic activity post lifting of COVID-19 restrictions. Major indices jumped by 0.4-1.8% barring TAIEX in Taiwan which was largely unchanged (+0.1%).