Tadawul Review:

Tadawul All Share Index (TASI) extended its gains for the third consecutive session on Wednesday, adding 102 points (+0.8%) to close at 12,647, which is the highest closing level for the TASI in the past two months. The beginning of the index for the session was positive, as it opened the session at a higher level than it closed the previous day and continued its upward march throughout the trading session hours. In general, 14 sectors out of 20 sectors closed with an increase, while 97 stocks rose and 100 stocks decreased. Banks (+1.5%), Media and Entertainment (+1%), and Food & Beverages (+1.1%) sectors have had the biggest contribution of 78 points in the index's rise. Stocks-wise, the most influential on the index's rise were Al Rajhi Bank (+1.6%), Bank Albilad (+4.4%), and SABIC (+1.3%). The highest gainers for Wednesday's session included the Saudi Research and Media Group and Al-Rajhi Cooperative Insurance Company, as they both closed up by +10%. While the volume and value of trading activity decreased by -15% DoD to reach 182mn shares and -11% DoD to reach SAR7.1bn.

 

Market Wrap International:

The global equity indices retreated amid heightened intraday volatility on Wednesday. The minutes of the Fed's recent meeting and the inflation data in the U.S were the major drivers. The Asian markets however ditched the broader trend and moved higher. In the U.S, the S&P 500 Index and Nasdaq Composite Index pared some losses following the release of minutes of the Fed’s meeting to close down by 0.7% and 1.3% respectively. The minutes substantiate the market view of deceleration in interest rate hikes in the coming meetings. Energy stocks were the top performer while big tech companies were the major drags.

In Europe, the shock from above-expected inflation data in the U.K was felt across the asset classes and the region. The FTSE-100 Index dropped by 0.3% for the day, the yields on bonds in the U.K and other countries moved higher and Euro lost value against the USD (Euro pared losses subsequently). The benchmark Stoxx Euro 600 Index ended its 5-day winning streak to end the session with a 0.9% loss.

In Asia, the back-to-back statement from the Chinese regulator expressing the commitment to further support for economic growth made its impression. The sentiments in the region were further boosted by foreign flows, particularly in Japan.  Almost all major indices closed higher (0.5-1.2%) with Shanghai Composite (+0.4%) in China and HangSeng (+0.5%) in Hong Kong and Nikkei 225 (+1.2%) in Japan attracting the most focus.