Tadawul Review:

Tadawul All-Share Index (TASI) declined for the second day in a ‎row on Tuesday, falling by -101 points (-0.9%) to close at 11,097 ‎levels, the lowest closing since September 2‎‏8‏‎, 2022 (35 trading ‎days). TASI made a modest positive opening (+16points) , but it ‎quickly came under selling pressure. The heavyweight sectors- ‎Banks (SNB: -2%), energy (Aramco:-1.8%) and material (-0.9%) ‎were the major drag to the index's performance. TASI fell -151 ‎points from the previous close in the normal trading session before ‎partially paring its losses in the closing auction . In general, 15 out ‎of 20 sectors closed in the red zone, while 92 stocks rose and 106 ‎fell.  Trading activity also witnessed a decline in volume and value ‎by 13% and 14%, respectively, to reach 121mn shares and ‎SAR4.9bn.  TASI has come close to an important psychological ‎level of 11k. The index has earlier taken support from around the ‎same levels. Possibility of the index consolidating around current ‎levels is high.   ‎

 

 

Market Wrap International:

The global equity indices moved higher on easing US-China tension ‎‎, fresh relaxation measures for the Chinese property sector and ‎softer inflation data in the U.S. The treasury yields retreated by 3-‎‎7bps, wiping out the uptick seen in the previous session while the ‎dollar index also declined. In the U.S, the S&P 500 Index and ‎Nasdaq Composite jumped by ‎‏0.9‏‎-1.‎‏4‏‎%. The below consensus ‎reading for Producer Price Index (PPI) has further substantiated the ‎market view of easing inflationary pressure and reinforces ‎expectation of slowdown in the pace of rate hikes by the Fed.‎

In Europe, the Stoxx Euro 600 Index moved sideways but managed ‎to close with a modest gain of 0.‎‏4‏‎%. Overall sentiments are still ‎positive on the back of strong 3Q earnings, easing concerns on ‎energy supply and reopening of China. Real estate and Retail ‎sectors were prominent underperformers for the day while Utilities, ‎media and technology names surged.‎

In Asia, the HangSeng (+4.‎‏1‏‎%) in Hong Kong was once again in the ‎limelight along with Shanghai Composite (+1.‎‏6‏‎%) in China. The ‎meeting of the leaders of two superpowers, the U.S and China, ‎raised expectations of restart of cooperation in future and easing of ‎tension between the two countries. China also announced more ‎measures to overcome the liquidity crunch of the property ‎developers. Elsewhere, indices in Japan (TOPIX:+0.4%), Korea ‎‎(KOSPI: 0.2%), Taiwan (TAIEX: +2.‎‏6‏‎%, fresh foreign buying) and ‎India (SENSEX: -0.2%)  closed positive.‎