Tadawul All Share Index (TASI) underwent yet another negative closing on Monday with the index dropping by 105point to close at 10,033 levels. The negative sentiment was evident from the word go as the index fell by xx points to close below the 10k mark within a few minutes of the start. The index fluctuated around the 10k mark and managed to stay above on a closing basis thanks to recovery in the post-closing auction. All listed sectors except for utilities and healthcare equipment closed in red. Banks (-1.1), Material (-0.8%) and energy (-1.82%) were the major drags on TASI. Americana Restaurants, the first listed stock at TASI and ADX, rose 2% on debut. Total traded volue increase/decreased by 94%. The sentiment at TASI remained fragile dragged by recent volatility in oil prices and prospect for further rate hikes. The index has respected the important psychological levels at 10k for now. Key technical indicators remain oversold though overall momentum is negative. The index may go through more volatile sessions in near-term.
The global equity markets edged lower on Monday with investors deciding to stay cautious ahead of important policy decisions. The COVID-19 updates from China and expectations of new supportive measures for property market also weighed on investors sentiments. In the U.S, the benchmark S&P 500 and Nasdaq Composite Index crawled up by 1.3-1.4%. Eenrgy, Tech and Utilites were the major performers for the session. Investros are eyeing the CPI data (due tomorrow) and FOMC decision on rate hike (due on Wednesday).
In Europe, the Stoxx Euro 600 Index retreated by another 0.5% on Monday. The rising prices of electricity remains a major concerns as the region enters into peak winter period. Country level indices also slid down by 0.3-0.4%.
In Asia, risk-off mode further deepened as infection cases in China showed another uptick. The tech heavy indices underperformed the region in particular in the backdrop of intensifying efforts from the U.S to ensure ban of export of chip from the U.S to China. Hang Seng was the worst hit among key market with -2.2% drop followed by Shanghai Composite (-0.9%) and KOSPI (-0.7%). The indices in Japan (TOPIX:0.2%) and India (SENSEX: -0.1%) were little changed at session end.