Tadawul All-Share Index (TASI) closed higher for the third consecutive day on Thursday, achieving +42 points (+0.4%) to close at the level of 10,290. During Thursday's session, TASI tends to fluctuate, with market activity ranging between 113 points. TASI had a shaky start to the session before turning positive in the early trading hours and reaching an intraday high of +47 points. However, TASI was under selling pressure until it hit an intraday low of -66 points but it quickly rebounded by 109 points from its lowest point. In general, 16 out of 20 sectors rose, while 149 stocks advanced and 51 declined. Utilities (+3.7%), Materials (+0.7%), and Insurance (+2.8%) sectors contributed the most to the index's rise of +25 points. Stock-wise, ACWA Power (+5.2%), Saudi National Bank (+0.9%), and Banque Saudi Fransi (+2.6%) contributed most to the rise of the index. The trading volume activity declined by 33% DoD to reach 232mn shares, while the trading value increased by 29% DoD to reach SAR6.7bn. TASI is likely to show more volatile behaviour in the next few sessions. The unexpected hawkish tone of global central banks in the oliy decision announced over the weekend, the drop in commodity prices and volatility in international equity benchmarks will likely weigh on TASI near-term performance.
The global equity markets reeled from back-to-back negative surprises from the central banks (Fed, ECB, BoE). The risk-off mode amid hawkish guidance from the central banks on the likely future path of interest rates set in and estimated to have eroded over USD1.1trn from S&P 500 Index’ market capitalization in merely two sessions. The near-term yields have risen, the USD index has recovered some ground, and commodities have partially given away recent gains. In the U.S, the S&P 500 Index closed with -1.1% loss on Friday, to settle at 3852. All eleven listed industrial groups were negative. Other benchmarks too suffered losses with Nasdaq Composite and Dow Jones dropping by -1.0% and -0.8%%.
In Europe, the equity benchmarks charted a similar trajectory with the benchmark Stoxx Euro 600 Index falling by another 1.2% on Friday, following a massive 2.8% drop on Thursday. Country level indices too recorded losses (FTSE100:-1.3%, CAC 40:-1.1% , DAX:-0.7%).
The Asian markets also went through the downside volatility, baring Hang Seng (+0.4%), the only major index to record gains, and Shanghai Composite and KOSPI (unchanged). The reduced risk of delisting for U.S listed Chinese stocks, along with recent official statements hinting at fresh support measures for the property sector, buttressed the markets in China and Hong Kong. The other major indices were down by 0.7-1.4%.