Tadawul Review:
Tadawul All Share Index (TASI) rose on Sunday,up by 74 points (+0.7) to close at 10,483 levels. TASI started the session positively, gaining 10 points, but later declined, reaching its lowest point of the day in the first trading hour. However, the index managed to recover and began a subsequent upward trend that continued until the end of the session. Overall, 14 out of 20 sectors closed in the green zone, while 121 shares rose and 91 fell. Banks (+1.0%), health care equipment and services (+4.1%), and telecom (+1.7%) sectors contributed the most to the index's rise. Stockwise, Al Rajhi Bank (+1.1%), Saudi National Bank (+2.2%), and ACWA Power (+2.6%) were the major contributors. The trading activity witnessed a decline in volume and value of -24% and -29%, respectively, to reach 118mn shares and SAR3.0bn in value traded.
For the global equity markets, investors are closely monitoring the situation in Palastine, with chances to escalate, adding more apprehension to the market next week. In addition, investors are anxiously waiting for the Federal Reserve meeting and key U.S. data on Wednesday. Brent futures rose 2.9% to $90.48 per barrel on fears of supply disruptions caused by the growing conflict.
In Europe, as the Bank of Russia hiked interest rates by a higher than expected 200 basis points to 15% on Friday. Furthermore, The Bank of England is expected to project a challenging period for the UK economy in the months leading up to the upcoming general election, which raises concerns for Prime Minister Rishi Sunak's government.
In Asia, while investors still worry about what is happening outside and looking for a popular safe haven. the declining foreign direct investment in China puts additional pressure on Beijing and local authorities as they grapple with the economic slowdown and seek effective solutions to mitigate its impact.