Tadawul Review:

TASI continued its upward trend adding 51 points (+0.4%), and registering an increase for the third consecutive session. The market initially underwent mild volatility in the first trading hour but then increased for the rest of the session before closing at 13,733 levels. The Banks sector maintained its upward momentum rising by +1.1%. This was mainly due to ALRAJHI which jumped 2.8%, crossing the SAR 180/sh mark and recording the highest close since its listing. The Energy sector nearly closed flat, ending the session in the green zone by 0.1% as SAUDI ARAMCO climbed +0.1% while PETRO RABIGH declined by -3.6%. The Materials sector landed in the red zone by -0.3% despite a +7.1% gain in ASLAK, which was ranked as the top gaining share for Monday’s session. Trading volumes and values were reduced by -9.1% and -6.6%, respectively. With Brent crude topping $112/bbl, on concern over tight global supply due to the current situation in Libya alongside the Ukraine crisis, TASI may likely sustain the increasing trend in the coming session.

Market Wrap International:

The S&P 500 began the week with tiny gains and losses before leaving the day almost unchanged, as traders assess how active the Federal Reserve will be in its efforts to keep inflation under control. Six of the 11 major industrial groups fell, causing the benchmark index to decrease -0.02% for the day. Health care was the sector that fell the most, while energy and financials climbed. The Nasdaq 100, which is heavily weighted in technology, rose +0.1%, while the blue-chip Dow Jones Industrial Average fell -0.1%.

European capital markets were closed on Monday for the holidays and will reopen tomorrow (Tuesday). A quick summary of European market close of last week, FTSE 100 closed +0.5%, DAX was +0.6% positive, CAC 40 rose by +0.7%, while the broader European index ended +0.7% in the green zone.

Major Asian stock markets dipped on Monday as investors reacted to the release of China’s economic data. In China, the SHCOMP recorded a loss of -0.5% after the release of the country’s economic data, which showed lower-than-expected GDP growth in the first quarter. Furthermore, the People’s Bank of China said on Friday that it would reduce the reserve requirement ratio for all banks by 25 basis points, which many believe might not be enough to reverse a sharp economic slowdown. Nikkei 225 and KOSPI fell by -1.1% and -0.1%, respectively. SENSEX also recorded a loss of -2%, falling for the fourth consecutive session as concerns rose with regards to inflation and also attributing to the massive selloff in IT stocks.