Tadawul Review:
Tadawul All Share Index (TASI) fell for the sixth straight session on Thursday and lost another -103 points (-0.9%) to close at 11,376 levels. TASI opened the session negatively by -36 points from the previous but then the index rose to its intraday high, however, the index gradually declined until the end of the session. In general, 14 out of 20 sectors closed in the red zone, while 127 of 223 shares fell and 80 rose. Banks (-1.7%), Materials (-0.6%), and Utilities (-2.5%) sectors contributed the most to the index's -38-point fall. Stockwise, Al Rajhi Bank (-0.8%), Saudi Fransi (-4.8%), and Saudi Awwal Bank (-1.5%) were the major contributors. The trading activity witnessed an increase in volume and value by 26% and 6%, respectively, to reach 258mn shares and SAR5.7bn in value traded. TASI has lost cumulatively 88 points in the last six sessions, dragged primarily by bank stocks.
The global equity market ended another dramatic week on a muted note. The Fed Speak post the surprising week cut, macro data, optimism in China and ongoing result season were some of the highlights of the week. For the U.S market, the macro data has rather added to market confusion on key issues of the need to do further rate and the debate around soft/hard lending. The wage data for the foregoing month came in hotter than expected. The sovereign yields in the U.S closed the volatile week with a leg-down (11-17bps drop) over a 2-10 year curve. The S&P 500 failed to maintain its intraday gains and closed with 0.5% losses. Apple’s results were the major drag for the tech names. 9 out of 11 sectors in the S&P 500 recorded losses.
In Europe, the Stoxx Europe 600 Index managed to partially pare weekly losses and gained 0.3%. The ongoing result season, and strong oil prices provided support the benchmark. The country level indices were also up in the range of 0.4-0.8%.
In Asia, the new measures to support the property sector by the Chinese authorities lifted Hang Seng (+0.6%) and CSI300 Index (+0.4%) . Indices in India (Nifty50:+0.7%) and Japan (Topix:+0.3%) also recorded gains on new policy announcements for imports and result season respectively. Indices in Korea and Taiwan were down by a marginal 0.1-0.3%.