Ceasefire triggers risk rally: Stock markets cheered signs of a potential resolution to the Iran-Israel conflict, with the S&P 500 ending the day up 1% yesterday. Regional markets, which closed earlier in the day before news of an Iran-Israel ceasefire broke out, also settled in the black.

Earlier this week, the USD had staged a modest rally, though it weakened yesterday, falling 0.2% against the JPY, while the EUR and AUD strengthened. The Bloomberg USD Spot Index — which weighs the USD against a basket of developed and emerging market currencies — fell 0.2%.

The earlier rush to safe havens still held when it came to US Treasuries, which rallied after Iranian state media reported a missile strike on a US air base in Qatar, Bloomberg reports. Yields on 10-year Treasuries fell to their lowest levels in a month, while the five-year yield fell to 3.86% on hopes for a sooner-than-expected interest rate cut from the US Federal Reserve, after Fed Governor Michelle Bowman said she would support a July rate cut if inflation continued to cool. Gold also settled up 0.3%.

The dip in yields have also spurred more bond sales, with companies in the US and Europe looking to lock in more affordable rates amid uncertainty over the outlook for yields down the line. The Royal Bank of Canada sold EUR 750 mn in green bonds, while BNP Paribas is looking to sell a USD-denominated AT1 bond, and Australia’s OMV sold a EUR 750 mn hybrid bond.

MARKETS THIS MORNING-

Asian markets also gained on the back of news of the ceasefire, with South Korea’s Kospi up 2.1%, Japan’s Nikkei rising 1.3%, and Hong Kong’s Hang Seng up 1.4%. China’s CSI 300 was flat. Over on Wall Street, futures rose on the news, with S&P 500 futures up 0.4% and Nasdaq futures rising 0.6%.

TASI

10,710

+1.3% (YTD: -11.0%)

MSCI Tadawul 30

1,378

+1.2% (YTD: -8.7%)

NomuC

26,358

+0.8% (YTD: -16.3%)

USD : SAR (SAMA)

USD 3.75 Sell

USD 3.75 Buy

Interest rates

5.0% repo

4.5% reverse repo

EGX30

31,419

+1.2% (YTD: +5.6%)

ADX

9,558

+0.5% (YTD: +1.5%)

DFM

5,411

+1.1% (YTD: +4.9%)

S&P 500

6025

+1.0% (YTD: +2.4%)

FTSE 100

8758

-0.2% (YTD: +7.2%)

Euro Stoxx 50

5222

-0.2% (YTD: +6.7%)

Brent crude

USD 69.34

-3.0%

Natural gas (Nymex)

USD 3.66

-0.9%

Gold

USD 3395.00

+0.3%

BTC

USD 103,765.6

+4.7% (YTD: +11.0%)

Sukuk/bond market index

911.27

-0.1% (YTD: +1.0%)

S&P MENA Bond & Sukuk

144.12

-0.1% (YTD: +3.0%)

VIX (Volatility Index)

19.83

-3.8% (YTD: +14.3%)

THE CLOSING BELL: TADAWUL-

The TASI rose 1.3% yesterday on turnover of SAR 4.1 bn. The index is down 11.0% YTD.

In the green: Red Sea (+10.0%), Alrajhi Takaful (+8.9%) and NGC (+7.6%).

In the red: Sisco Holding (-3.1%), Alistithmar Reit (-1.6%) and EPCCO (-1.2%).

THE CLOSING BELL: NOMU-

The NomuC rose 0.8% yesterday on turnover of SAR 26.5 mn. The index is down 16.3% YTD.

In the green:Naas Petrol (+19.7%), Balady (+9.4%) and United Mining (+8.1%).

In the red: Alnaqool (-6.4%), Sama Water (-5.6%) and Hawyia (-5.4%).

CORPORATE ACTIONS-

Allied Cooperative Ins. Group’s general assembly voted down the BoD’s recommendation to increase capital by 71.8% to SAR 500 mn via a priority rights issue, it said in a disclosure to Tadawul yesterday. The SAR 209 mn capital hike would have involved issuing 20.9 mn shares at SAR 10 apiece.

Theeb Rent a Car will distribute a dividend payout of SAR 22.4 mn for 1Q 2025 at SAR 0.52 per share, according to a disclosure to Tadawul released on Sunday. The distribution date is set for 10 July.

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