There are more signs than ever before that interest in US equities has peaked, with a Bank of America survey showing investors have slashed their allocations by the most ever in March, the Financial Times reports. Investors raised their cash allocation from 3.5% to 4.1%, with the speed of the sell-off “consistent with end of equity correction,” Reuters reports. Some 70% of investors said the “US exceptionalism” theme prevalent in the first few months of the year following US President Donald Trump’s inauguration is long gone.

Tech stocks in particular are falling out of favor: The survey found that investors had moved to a net 12% underweight position on US tech stocks, the lowest allocation for more than two years. Shares in tech firms like Elon Musk’s Tesla continued to witness a sell-off yesterday, with the blue-chip S&P 500 closing yesterday 1.1% down, and the tech-heavy Nasdaq falling 1.7%. Tesla’s shares dipped more than 5%, while Nvidia’s shares fell 3.4%.

In context: Investors have turned bearish towards US stocks after being raging bulls for months earlier this year due to concerns over stagflation, trade tensions, and a potential slowdown in economic growth. Global growth expectations recorded their second-largest decline on record, according to the survey.

The US bond market is also seeing investors shift away from riskier assets amid recession fears and uncertainty over Trump’s tariff policies, Reuters reports separately. Investors have been extending bond duration for at least a month, positioning for lower yields. JP Morgan’s Treasury Client Survey revealed that long positions on treasuries are now at their highest level since 2010.

On the other hand, gold is having a much better week, with investors’ shift towards safe-haven assets pushing its price past the USD 3k mark yesterday for the second time this week, Reuters reports. The rally was fueled by a weaker USD and ongoing tariff uncertainty, as well as renewed tensions in the Middle East after Israel broke the ceasefire in Gaza with airstrikes yesterday, killing more than 400 people. Trump’s inauguration has also given gold a new impetus, with the asset hitting record highs 14 times, reflecting strong demand.

MARKETS THIS MORNING-

Asian markets are mixed this morning, with Japan’s Nikkei and Topix both up, along with South Korea’s Kospi, while China’s CSI 300 opened flat, and Hong Kong’s Hang Seng is down 0.25%. Over on Wall Street, little has changed in futures markets following yesterday’s losses.

TASI

11,792

-0.8% (YTD: -2.0%)

MSCI Tadawul 30

1,493

-0.7% (YTD: -1.1%)

NomuC

30,719

-1.0% (YTD: -2.4%)

USD : SAR (SAMA)

USD 3.75 Sell

USD 3.75 Buy

Interest rates

5.0% repo

4.5% reverse repo

EGX30

31,609

+0.5% (YTD: +6.3%)

ADX

9,463

+0.1% (YTD: +0.5%)

DFM

5,149

-0.4% (YTD: -0.2%)

S&P 500

5,618

-1.0% (YTD: -4.5%)

FTSE 100

8,705

+0.3% (YTD: +6.5%)

Euro Stoxx 50

5,485

+0.7% (YTD: +12.0%)

Brent crude

USD 70.56

-0.7%

Natural gas (Nymex)

USD 4.06

+0.2%

Gold

USD 3,040

0.0%

BTC

USD 82,342

-2.1% (YTD: -12.1%)

THE CLOSING BELL: TADAWUL-

The TASI fell 0.8% yesterday on turnover of SAR 6.0 bn. The index is down 2.0% YTD.

In the green: AlDawaa (+9.6%), Sadafco (+3.7%) and Walaa (+3.6%).

In the red: Cenomi Retail (-7.2%), Banan (-6.0%) and Enaya (-5.6%).

THE CLOSING BELL: NOMU-

The NomuC fell 1.0% yesterday on turnover of SAR 39.0 mn. The index is down 2.4% YTD.

In the green: Sama Water (+7.8%), Mulkia (+7.5%) and AlWaha Reit (+6.0%).

In the red: NGDC (-6.9%), Obeikan Glass (-6.3%) and AlWasail Industrial (-6.0%).

CORPORATE ACTIONS-

Saudi Ground Services will distribute SAR 188 mn in dividends for 2H 2024 at SAR 1 per share, it said in a disclosure to Tadawul. The eligibility date is 25 March 2025, with distribution set for 17 April.

Dallah Healthcare will distribute SAR 50.6 mn in interim dividends for 4Q 2024 at SAR 0.50 per share, according to a disclosure to Tadawul. The eligibility date is 6 April, with distribution set for 20 April.

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