Tadawul All Share Index (TASI) ended the last day of November positively on Wednesday, rising +145 points (+1.4%) to close at 10,897, capping the monthly losses at -771 points (MoM: -6.6%, YTD: -3.4%). TASI started the session negatively, dropping -69 points in the first hour of trading to reach an intraday low. From there, TASI began to build positive momentum due to strong investor interest in purchasing shares at attractive prices, rising 213 points from the intraday low to reach its intraday high at the session's end. In general, all sectors closed in the green except REITs, while the advance to decline ratio stood at 2.7:1. Banks (+1.1%), Materials (+1.9%), and Utilities (+2.9%) sectors contributed the most to the index's rise of +80 points. Stock-wise, Maaden (+5.7%), Alinma Bank (+4.6%), and Aramco (+0.9%) contributed most to the rise of the index. The trading activity witnessed a remarkable improvement in volume and value by 54% and 95%, respectively, to reach 170mn shares and SAR8bn (the highest trading value within 3 months).
The global equity markets closed the month on a positive note with optimism on China re-opening, latest Fed Speak and inflation in the ECB in the news. The economic data (job addition, GDP) in the U.S was mixed and but broadly pointed out towards slow-down in economic growth. Commodity prices moved higher while the dollar index retreated. In the U.S, the benchmark S&P 500 Index and Nasdaq Composite closed with gains of +3.1% and +4.4%. Information technology and communication service were the major performers for the session.
In Europe, the latest data showed inflation in Nov-22 rose at a below expected pace of 10%, recording the first monthly drop in the data for over one and half years. The data substantiates the drop in inflationary pressure seen in member countries. The CPI data, along with optimism on China drove the benchmark Stoxx Euro 600 Index higher by +0.6% on Wednesday.
In Asia, the major indices took a cue from the COVID-19 updates in China where the authorities have partially lifted Covid restrictions in some districts in Guangzhou. The updates fueled optimism of gradual reopening of the economy soon. The Hang Seng index in Hong Kong (+2.2%) and Shanghai Composite in China staged a late hour move. The other major indices (KOSPI:+1.6, TAIEX:+1.2%) also moved higher. Indices in Japan (TOPIX: -0.4%) were the underperformers for the second straight session.