Tadawul Review:

Tadawul All Share Index (TASI) closed higher adding 29 points (+0.2%) to close at the highest level in two months at 12,544. The index had opened the session at a similar level as the previous day’s close and the trading remained within the range of 90 points throughout the day. In the last hour of the trading session, before the closing auction, the index rose by 35 points. In addition to this, the market added another 14 points during the closing auction. In general, 10 out of 20 sectors closed in the green zone, as 101 stocks rose and 96 fell. The index gains were led by the Materials (+2.2 %), Real Estate (+0.7%), and Media (+2.8%) sectors, while the Banks (-0.4%) and Health Care Equipment (-1.7%) sectors were the major drags on the index. Stock-wise, Maaden (+7.9%) and SABIC Agri-Nutrients (+6.2%) led the charge. The top gainer for the day was Naqi Water Company, which closed up by 26% on its first day of listing. The trading activity witnessed a decrease in the trading volume by -14% to reach 193mn shares, while the trading value increased from the previous closing by 13% to reach SAR7.9bn.

 

Market Wrap International:

The global equity indices broadly moved sideways on Monday with economic data in Asia and the U.S and the drop-in commodity prices making headlines. The benchmark indices in the U.S moved in a close range and managed to close with +0.4،+0.6% gains on Monday. The housebuilder confidence measure in the US slumped to its lowest level since the 2007 housing market collapse.

 

In Europe, the benchmark Stoxx Euro 600 Index was largely unchanged during most of the session closing up by +0.3%. The index weathered the dual shocks of the fall in commodity prices and the announcement of a new gas levy on consumers in Germany.

 

In Asia, markets moved in divergent directions amid a focus on economic data (Industrial Production, Retail Sales, Fixed-Asset Investment) from China and a surprise reduction in the medium-term lending benchmark by the central bank. Indices in Japan (TOPIX: +0.6%, Nikkei 225: 1.1%) and Taiwan (TAIEX: +0.8%) closed the session with modest gains while the equity benchmark in Hong Kong (Hang Seng: -0.7%) dropped the most among major markets. Investors in China were double-minded with the rate cut decision and weak economic data reinforcing the expectation of more fiscal support measures by the authorities to revive economic activity.