Tadawul Review:

Tadawul All Share Index (TASI) closed positive for the second ‎consecutive session on Monday and added 82 points (+0.7%) ‎to close at 12,022levels. Strong economic data on industrial ‎production and movement in international markets helped ‎TASI to sustain its positive momentum. The index survived an ‎initial nervous hour to regain its upward trajectory till the ‎session ended. In general, 12 out of 20 sectors closed in the ‎green zone, while the advance to decline ratio came in at ‎‎~1:1. Banks (+1.5%), food production (+1.4%) and health care ‎‎(+1.6%) contributed the most to the index’s rise (+75 points). ‎Among the biggest gainers of Monday's session were Tihama ‎Advertising and Public Relations Company (+7.5%), Saudi ‎Chemical Company (+6.7%), and Nama Chemicals Company ‎‎(+4.7%). The trading volume and value decreased by -8% and ‎‎-3%, respectively, to reach 112 million shares and 4413 billion ‎riyals. TASI is likely to draw inspiration from the movement in ‎the international markets and higher oil prices and may look ‎to sustain the positive momentum.  ‎

 

 

Market Wrap International:

The global equity indices picked up from where they have left ‎off last week to record yet another session ‎of gains on ‎Monday. The expectation of softening of inflation in the U.S ‎‎(data due on Tuesday) and the latest statements ‎from the ‎ECB official kept the ‎sentiment positive. In the U.S, the ‎benchmark indices rose by 0.7-1.3% on Monday led by energy ‎and tech names. All eleven sectors in the S&P 500 Index ‎closed in the green. Yields on the US treasuries also moved ‎higher with the latest auction drawing not a very encouraging ‎response. ‎

In Europe, the Euro gained as much as 1.6% on Monday, ‎recording the highest gains since Mar-22. The ‎currency ‎appreciation prompted many of the investors who have been ‎sitting on the sidelines to put ‎money to work. The benchmark ‎Stoxx Euro 600 Index jumped 1.8% to record its third straight ‎session ‎of gains led by auto, retailer and miners. Country level ‎indices also closed the session on a positive ‎note.‎

In Asia, a softer dollar, and strong sales data for chip makers in ‎Taiwan drove the markets higher. ‎Indices in Japan (Topix: ‎‎0.8%), Taiwan (TAIEX: 1.5%, TSMC contributing heavily to ‎gains) and India ‎‎(SENSEX: 0.5%) extended the positive ‎momentum into the third session. Chip makers in the region ‎‎were positive on news of more curbs of the US exports of ‎semiconductor and chip making tools to ‎China. Markets in ‎China, Hong Kong and Korea were for a public holiday.‎