Tadawul Review:
Tadawul All Share Index (TASI) fell on Monday’s session for the eighth consecutive session, down by -21 points (-0.2) to close at the 10,575 level. TASI opened on a negative note of -17 points and continued fluctuating throughout the session until the end. Overall, 10 out of 20 sectors closed in the red zone, while 91 shares fell and 128 rose. Banks (-0.5%), Food and beverages (-2.3%), and Insurance (-0.9%) sectors contributed the most to the index fall. Stockwise, Saudi National Bank (-2.2%), Saudi Awwal Bank (-3.6%), and Sabic (-1.8%) were the major contributors. The trading activity witnessed a decline in volume by -4% to reach 193mn shares, while the value increased by 31% to reach SAR5.0bn in value traded.
In the U.S. markets, indices rose as an escalating conflict between Israel and Hamas produced a fresh headache for central banks as they try to ease up on interest rate hikes to avoid recessions resulting in investors pushing toward safe-haven assets, Meanwhile crude prices jumped close to 3%. The S&P 500 ended on a positive note by +0.6%, with all of eleven listed sectors rising, and the Nasdaq Composite rose by +0.4%. While some people say “history doesn’t repeat itself”, the past Israel-Hamas conflicts (1973) caused a major oil price surge coupled with stocks becoming unpredictable and similar consequences may currently begin unfolding.
In Europe, the stocks declined amid political crisis boosted oil stocks. The Stoxx Europe 600 was lower by -0.3%, with travel and leisure shares lagging on concerns that higher oil prices would erode profits. Defense shares also advanced. In the UK, the FTSE-100 index closed down by -0.03% and the country-level indices closed within a range of -0.7%|-0.5%
In Asia, chinese stocks ended lower in a volatile session (SHCOMP:-0.4%|CSI300:-0.1%) with losses upon resuming trading after the Golden Week holiday while Hang Seng was up by +0.2%. The markets in Japan, Taiwan, and Korea were closed, while the India index (SENSEX) closed on a negative note of -0.7%. Meanwhile, investors analyzed holiday spending data and grappled with the impact of external turmoil causing global market volatility.