Tadawul Review:
Tadawul All Share Index (TASI) fell for the third day on Monday’s session by -97 points (-0.8%) to close at 11,692 levels. TASI started the trading session with a negative opening of -3 points from the previous day's close, and the downward trend persisted, with the index reaching its lowest point at the start of the day. However, TASI remained steady during the remainder of the session. In general, 13 out of 20 sectors closed in the red zone, while 142 of 223 shares fell and 70 rose. Banks (-1.5%), Telecom (-3.1%), and Materials (-0.7%) sectors contributed the most to the index's -89-point fall. Stockwise, Saudi National Bank (-2.9%), Saudi Telecom (-4.4%), and Riyad Bank (-2.8%) were the major contributors. The trading activity witnessed an increase in volume and value by 25% and 22%, respectively, to reach 216mn shares and SAR5.9bn in value traded.
The global equity markets closed the month on a positive note amid results announcement and renewed optimism over the end of rate hike campaign and fresh measures in China to boost the economic growth. In the U.S, the ongoing result season remained a major focus area for investors, a week after the FOMC meeting. The sovereign yields were broadly stable. Besides results, investors are looking at the upcoming economic data on the labor market to further substantiate the market ‘s view of the likely end of Fed rate hike campaign.
In Europe, the Stoxx Europe 600 Index rose by nominal 0.1% to cap another month of positive return. The earnings results painted a mixed picture , however, the benchmark managed to remain positive due to strong performance in energy and health.
In Asia, the major markets were in for a rally on Monday with easing investors’ concerns on change in monetary policy in Japan and the announcement to incremental steps by Chinese authorities to support economic growth. The equity indices in Japan were the major outliers with Nikkei 225 and Topix rising by respectively 1.3% and 1.4%. In China, CSI300 (+0.6) and Hang Seng (+0.8%) registered another session of positive return. TAIEX was the only major equity benchmark which faced a drop (-0.9%). Other markets jumped din the range of 0.5-0.9%.