Tadawul Review:
Tadawul All Share Index (TASI) remained unchanged on the first session of June, with a minor decline by -1 point from the previous close to settle at 11,015 levels. TASI opened the session positively, by 20 points, reaching its intraday high by 72 points in the first trading hour, and continued flactating during the session before it dropped by 52 points on the closing auction. In general, 10 out of 20 sectors closed in the green zone, while 113 stocks rose and 100 fell. Insurance (+2.4%), Energy (+0.5%), and Food and beverages (+1.0%) sectors contributed the most to the index's stability by 14 points. Stockwise, Al Rajhi Bank (+2.3%), Aramco (+0.5%), and Savola (+3.6%) were the major contributors. The trading activity witnessed a decline in volume and value of -49% and -57%, respectively, to reach 175mn shares and SAR5.0bn in value traded.
The global equity markets made a strong close to the week on Friday on the economic data in the U.S, FedSpeak and the prospects of new economic stimulus measures in China. In the U.S, the latest economic data on labour markets (Wage growth, non-payroll job additions and unemployment) sent a mixed signal to the investors and supported the view of possible pause in the Fed’s rate hike campaign in its upcoming policy meeting in mid-June. The treasury yields remained elevated and added another 10-16bps on Friday. The S&P 500 and Nasdaq Composite rose 1.5 and 1.1% on Friday led by material, industrial and energy.
In Europe, the Stoxx Europe 600 index and the country level indices moved in sync and were up by 1.2-1.9%. Tech, energy and mining names were in the lead. The spurt in equity prices was driven by positive sentiments on the inflation data for the region in the previous session and the U.S job report.
In Asia, HangSeng in Hong Kong led the charge and closed with 4.0% gain Shanghai Composite Index too was up 0.8%. The investors' sentiments were boosted in the index by a new flow of possible fresh measures to lift the property sector in China. Low valuation also attracted investors' interest. Other major indices in the region were also up in the range of 1.6-1.2% barring Sensex in India which was up 0.2%.