Tadawul Review:
Tadawul All Share Index (TASI) fell on Monday by -6 points to close at 11464 levels. TASI opened the session on a positive note, up 9 points from the previous close, and continued the session volatile to the end before dropping by 21 points in the closing auction. In general, 9 out of 20 sectors closed in the red zone, while 113 of 223 shares fell and 87 rose. Banks (-0.3%), Energy (-0.7%), and Health care equipment and services (-1.5%) sectors contributed the most to the index's fall 23points. Stockwise, Aramco (-0.7%), Al Rajhi Bank (-0.3%), and Saudi Fransi (-1.5%) were the major contributors. The trading activity witnessed an increase in volume and value by +8% and +40%, respectively, to reach 177mn shares and SAR5.4bn in value traded.
The equity benchmarks in the U.S opened higher on Monday ahead of key inflation and jobs data this week that offers more clues on the Federal Reserve's interest rate path. The announcement of new measures by China to boost its markets also provided further support. S&P 500 edged up 0.6% with 10 out of eleven listed sectors rose while Nasdaq Compiste rose 0.8%. Federal Reserve Chair Jerome Powell left open the possibility of further rate hikes with the dollar slid from a 12-week peak on Monday.
The European stocks rose on Monday as China’s stimulus measures to lift its equity market boosted risk sentiment, while investors considered the outlook for interest rates after cautious remarks from Federal Reserve Chair Jerome Powell. The Stoxx 600 was up 0.9%. Stock markets in the UK are closed for a local holiday. The country-level indices were up in a range between of 1%|1.3 %.
All major equity benchmarks in Asia moved higher by 0.2%|1.1% on Monday as the announcement of new support measures for the equity markets in China raised expectations of fresh stimulus for the real economy. Meanwhile, the latest statement from the BoJ Governors triggered a positive response in equity indices in Japan (+1.5|+1.7%), making them the best-performing benchmarks in the region.