Tadawul Review:
Tadawul All Share Index (TASI) ended a 5-day gain by falling on Thursday’s session by -58 points (-0.5%) at 11,848 levels. TASI opened the session on a negative note by -12 points and continued the session fluctuating around its opening levels before dropping by -20 points in the closing auction. In general, 14 out of 20 sectors closed in the red zone, while 120 of 223 shares fell and 88 rose. Banks (-0.7%), Health care equipment and services (-1.7%), and Utilities (-1.7%) sectors contributed the most to the index's -41-point fall. Stockwise, Al Rajhi Bank (-0.9%), ACWA Power (-1.7%), and Aramco (-0.3%) were the major contributors. The trading activity witnessed a declined in volume and value by -7% and -2%, respectively, to reach 234mn shares and SAR6.5bn in value traded.
The global equity markets broadly moved higher on Friday amid positive economic data, monetary policy announcement by BoJ and fresh measures to revive economic growth in China. In the U.S, PPE data came in broadly in-line with consensus expectations spurred market’s expectations of no rate hike by Fed in Sep. The impact of the data was visible in both bond (sovereign yields dropped by 5-6bps) and equity markets (S&P 500 Index rose by 1% to April-22 high). 9 out of 11 sectors on the S&P 500 Index closed higher.
In Europe, the Stoxx Europe 600 Index closed marginally lower (-0.2%) on Friday, but still managed to mark the second consecutive week of gains. The country level indices registered nominal gains.
In Asia, the Bank of Japan announced tweaking its benchmark 10% rate though the central bank still refrained from making a complete diversion to the current ultra-loose monetary policy stance. The latest development created confusion regarding BoJ’s commitment to stick to its policy stance in future. The benchmark equity indices in Japan closed lower (Nikkie 225:-0.4%, Topix:-0.2%). The banking stocks, however, gained on Friday as yields on 10-year bonds broke through the upper ceiling set by the central bank. The Japanese currency also saw intraday volatility. Rest of the Asian market took cue from the latest measures in China. Tech names were particularly bid up on further easing of regulatory concerns. Hang Seng (+1.4%) and CSI 300 (+2.3%) made big strides. Res of the major indices in the region rose by 0.2-1.8% barring Sensex in India which dropped by 0.2%.