Tadawul All-Share Index (TASI) remained unchanged on Thursday's session, to close at the same level as the previous closing, 10,532. TASI began the trading session on a muted note, but it soon started to fall until the middle of the session, when it reached its intraday low level of -90 points. However, the the drop in stock prices encouraged investors to buy on dip which helped TASI in paring its losses. In general, 6 out of 20 sectors closed in the red zone, while 152 stocks rose and 48 fell. Materials (+0.5%), Telecom (+0.8%), and Media (+3.3%) sectors contributed to the stability of the index, while Banks (-0.2%), Energy (-0.4%), and Utilities (-1%) were a drag on the index. Among stocks, Al Rajhi Bank (-0.7%), Aramco (-0.5%), and ACWA Power (-1.6%) pulled the index down the most. The trading activity witnessed a decline in the volume and value of trading by 27% and 18%, respectively, to reach 176mn shares and SAR3.7bn. TASI is likely to move in a narrow range with investors staying cautious given volatility in oil prices.
The global equity indices closed higher on Friday on the back of better-than-expected economic data in the U.S and optimism over Dec-end results. Markets had closed the foregoing year on a pessimistic note with a slew of monetary policy surprises. The latest economic data is proving an opportunity to the investors to better position for the result season. The wage growth in the U.S dropped ahead of consensus expectation. The treasury yields in the U.S fell to reflect concurrent market expectations. The benchmark S&P 500 and Nasdaq Composite rose 2.3% and 2.6% to mark the first weekly positive closing in over a month. Material, tech, & real estate were the three top performing sectors in the S&P 500 Index.
The indices in Europe painted a similar picture with the regional benchmark index, the Stoxx Euro 600 index rising by 1.2%. Country-level indices also closed the week on a strong note (FTSE-100: 0.9%, CAC40:1.5%, DAX:1.2).
Asian indices, however, moved in divergent directions on Friday following a number of sessions with strong positive returns after markets resumed trading in the New Year. Indices in Japan (TOPIX:+0.4%), Taiwan (TAIEXL+0.5%) and Korea (KOSPI:+1.1%) closed higher while indices in Hong Kong (HangSeng:-0.3%), and India (SENSEX-0.8%) retreated. Shanghai Composite (+0.1%) closed little changed.