Tadawul Review:

Tadawul All Share Index (TASI) remained unchanged at the end of a volatile session on Tuesday, adding 1 point (+0.01%) to close at the 12,545 level. The index opened at the same level as the previous day before going on to hit a high of 31 points during the first trading hour. Since then, the market underwent wild fluctuations swinging between small gains and losses. In general, 15 out of 20 sectors closed in the green zone, as 111 shares rose and 79 shares fell. Banks (+0.2%), Media (+5.8%), and Insurance (+1.9%) led the index gains, while Energy (-1.5%) and Food and beverages (-0.4%) were the major drags on the index. Stock-wise, the Saudi National Bank (+0.6%), Saudi Research (+6.3%), and Alinma Bank (+1.2%) led the charge. The top gainers from Tuesday's session were Al-Rajhi Takaful (+10%) and Saudi Research (+6.3%). The trading activity witnessed an improvement in the volume and value of trading by 12% and 2% to reach 215mn shares and SAR8bn. The market continues to remain choppy as investors await positive triggers with the ongoing result season nearing completion and receding Brent oil prices adding to investors' woes.

 

 

Market Wrap International:

The global equity indices underwent yet another session of indecisive move on Tuesday as investors digest the release of economic data across three regions. The strong performance of the indices in recent sessions, barring most indices in Asia, and the end of the result season has also added to the drag. In the U.S, the benchmark S&P 500 managed to turnaround by day end and close at a positive +0.2% while Nasdaq Composite Index edged down by -0.2%. Investors are keenly awaiting the release of minutes of the recent FOMC meeting. 6 out of the 11 sectors were positive in the S&P 500 Index led by consumer staples. Meanwhile, the economic data in the U.S (Housing Start, Industrial Production) carried a mixed signal for the market. 

In Europe, the benchmark Euro Stoxx 600 Index sustained its positive rally into the fifth session (+0.2%) amid negative headline news on energy and economic data. A strong end of the result season and the broader drop in commodity prices have kept the sentiment positive. In Germany, the Economic Sentiment Index fell to levels last seen during the 2008 crisis.

In Asia, the equity indices moved in a cautious range with most markets moving within the -0.2 & +0.2% range except for Sensex in India (+0.6%, due to continued foreign interest).  The latest announcement by the Chinese Premier to step up efforts for supporting economic activity has failed to draw a big positive response from investors.