Tadawul All-Share Index (TASI) closed positively on Tuesday, up 131 points (+1.3%), to close at 10,359 levels. TASI opened the session positively from the previous close, and after a slight decline at the beginning of the session (-18 points), TASI regained positive momentum throughout the trading session, and reached its intraday high of +164 points in normal trading. However, TASI fell 33 points in the closing auction, trimming some of its profits. In general, 16 out of 20 sectors closed in the green zone, while 146 stocks rose and 47 fell. Banks (+1.7%), Materials (+1.3%), and Energy (+1.9%) sectors contributed the most to the index's rise of +97 points. Stock-wise, Aramco (+1.9%), Al Rajhi Bank (+1.8%), and Saudi National Bank (+1.2%) contributed most to the rise of the index. Trading activity witnessed a remarkable improvement in volume and value by 22% and 80%, respectively, to reach 104mn shares and SAR3.5bn. The uptick in commodity prices and optimism over Dec-end results provided a positive backdrop for the market. TASI may look to recoup its year-to-date losses in the coming sessions.
The global equity markets exhibited mixed trends on Tuesday amid thin volume across the regions. The latest announcement from China on easing of COVID-19 restriction and the uptick in the yields in U.S treasuries were the major drivers for markets. In the U.S, the major indices slid on Tuesday with S&P 500 and Nasdaq Composite losing 0.4% and 1.4%. Technology stocks were the major drag for both indices with Tesla dropping by another 11.4% on Tuesday, taking its cumulative decline in value in this year to 69% so far.
In Europe, the benchmark Stoxx Euro 600 Index pared its intraday gains to close with minor gains +0.1%. The initial optimism over China re-opening theme was tempered by uptick in yields in the U.S.
In Asia, the announcement of withdrawing conditions of quarantine for inbound travelers in China stirred positive responses in all major markets. Indices in the region moved higher by 0.2-1% with stocks exposed to economic re-opening theme in China outperforming benchmarks. Shanghai Composite was up 1% while markets in Hong Kong were closed for trading.