Tadawul Review:
Tadawul All Share Index (TASI) ended Tuesday’s session positively by 81 points (0.7%) at 11,883 levels. TASI started the session positively by gaining 40 points and reached its intraday peak in the first hour of trading. However, the rest of the day saw TASI fluctuate before closing at its final level. In general, 13 out of 20 sectors closed in the green zone, while 103 of 223 shares rose and 106 fell. Banks (+1.2%), Food and beverages (+1.7%), and Materials (+0.3%) sectors contributed the most to the index's +59-point rise. Stockwise, Alinma Bank (+8.5%), Al Rajhi Bank (+1.5%), and ACWA Power (+2.1%) were the major contributors. The trading volume activity decreased by -11% DoD to reach 243mn shares, while the trading value increased by 7% DoD to reach SAR6.7bn.
The global equity markets moved higher with the earnings season and latest details on the likely stimulus package in China providing the lift. In the U.S, the S&P 500 Index and Nasdaq Composite jumped by 0.3% and 0.6% respectively with the support from tech and materials. The result season in the U.S is likely to go into high gear this week. Investors are also keenly awaiting the FOMC decision due on Wednesday. A 25bps hike in rate appears to be a foregone conclusion given current yields in the secondary market. However, a major focus area for investors is the future guidance on the likely path to pivot in interest rates.
In Europe, the Stoxx Europe 600 Index rose by 0.5%, supported by tech, materials and Consumer. Investors responded to ongoing earnings season and positive updates from China. The country level indices were broadly positive.
In Asia, China’s CSI 300 and Hang Seng stole the show with 2.9% and 4.1% jump. In a major development, the Chinese authorities have expressed commitment to support local consumption and the ailing property sector in order to support economic revival. Indices in Japan were mixed ahead of the central bank meeting this week. Other major indices in the region broadly moved higher.