Tadawul Review:

Tadawul All Share Index (TASI) fluctuated around its previous close on the first trading day after Eid holidays and managed to close with minor gains of 102 points (+0.9%). More than half of the index points materialized in the post auction session. The gains on Tuesday were primarily supported by energy, telecom and materials. Banking companies, another heavyweight index, however, dragged the index. The corporate newsflow (stc acquisition, transfer of Aramco shares) and general excitement over the ongoing Mar-end results are the key drivers for the fourth straight session of gains. Overall trading activity improved nominally (+20%) DoD though remained low relative to six-month average. Aramco (+3.9%), Alrajhi (+0.8%) and SABIC (2.2%) were the major performers and cumulatively contributed 94 points to the index gains. TASI may look to sustain its current positive momentum. 

 

 

 

Market Wrap International:

The global equity indices retreated on Tuesday amid a flurry of ‎corporate results and no-so-exciting news flow around China ‎recovery. In the U.S, the key equity gauges, S&P 500 and Nasdaq ‎Composite, dropped by 1.6% and 2%. The result of First Republican ‎Bank, a mid-sized bank in the U.S which received support from its ‎industry peers during the recent deposit run, was in the focus and ‎brought back the fears of renewed stress in the financial names. The ‎treasury yields dropped by 4-6bps with a 2-year yield sticking above ‎‎4% mark. ‎

In Europe, the benchmark Stoxx Europe 600 Index was down 0.4% ‎at session end. Financials (results), mining (commodity prices) and ‎real estate (interest rate hike) were the major drags for the index. ‎Banking results from the regional giant , UBS Banking Group, ‎Banco Santnder, came in below expectations. The country level ‎indices closed the session with modest losses of 0.3-0.6%.‎

 

In Asia, China and Japan took the limelight with recent economic ‎data in the former and the upcoming meeting of the central bank in ‎the latter. Overall, the key equity benchmarks dropped by 0.3-1.7% ‎with investors balancing the ongoing results with the latest ‎economic data in China. ‎