Tadawul Review: 

Tadawul All Share Index (TASI) ended Wednesday’s session negatively for the third day in a row by -145 points (-1.3%) to close at 11,073 levels. TASI had opened the session negatively, down by 74 points from the previous close. then it continued to decline until the end of the session. In general, 19 out of 20 sectors closed in the red zone, while 180 stocks fell and 33 rose. Banks (-1.4%), Materials (-1.3%), and Telecommunications (-3.0%) sectors contributed the most to the index's fall of -92 points. Stockwise, Al Rajhi Bank (-1.5%), Alinma Bank (-5.7%), and Aramco (-1.0%) contributed most to the fall of the index. The trading activity witnessed an increase in volume and value of 21.5% and 8.1%, respectively, to reach 232mn shares and SAR6bn in value traded. With another steep drop in oil prices and volatility in international markets, TASI is likely to show more downside volatility.

 

 

 

 

 Market Wrap International:

The global equity indices moved in divergent directions on Wednesday with investors responding to both ongoing earnings season, lingering concerns on the U.S banking system and key macro themes on Fed rate hike cycle and sustainability of China’s economic recovery in China. In the U.S, the much expected 25bps rate hike by FOMC materialized. However, the accompanying official comments suggesting possible further hike in June and slow economic growth/mild recession did not go down well among investors. The S&P 500 and Nasdaq Composite Indices gave up initial gains and closed with losses of 0.7% and 0.5%. All eleven listed sectors on the S&P 500 closed in red, led by energy and financial.

In Europe, the benchmark Stoxx Europe 600 Index managed to eke out a small positive return of 0.3%. Strong set of results drove the market higher. Energy and financials and autos were the major laggards. The ECB is due to announce its policy decision today whereby the consensus expects the central bank to reduce the pace of rate hike to 25bps from previous 50bps.

In Asia, all major indices closed with 0.3-1.2% losses on Wednesday, taking a cue from the volatility in other regions in the preceding session. Hang Seng (-1.2%) was the major laggard in the region on concerns on sustainability of economic recovery in China.