Tadawul Review:

Tadawul All Share Index (TASI) rose for the second consecutive day adding 33 points (+0.3%) to close at 12,330 levels. TASI on Tuesday continuously oscillated between its previous day's close before managing to settle with small gains as the market rose with a 1.0% DoD increase in Brent prices. The Materials (+1.2%), Energy  (+1.2%), and Telecom (+0.3%) sectors were the major index movers today adding 33 points while Banks (-0.3%) put downward pressure on the index. Amongst the stocks, ARAMCO (+1.3%) pushed the index most on expectations of a bumper 2Q2022 result followed by SNB (+1.0%), and Maaden (+3.6%). Naseej and the National Metal Manufacturing were the top gainers for the day rising by 9.9% and 8.5% respectively. The trading activity also continued to improve for the second day in a row, with an increase in the volume and value of trading by 7% and 19%, respectively, to reach 168mn shares and SAR7.5bn.

 

Market Wrap International:

The global equity indices struggled to maintain the levels on Monday with the latest earnings announcement by a chipmaker and the overhang from the much-awaited US CPI data (due tomorrow) weighed on the market performance. In the U.S, the S&P 500 Index suffered another session of losses and declined by -0.4%%. Investors were already spooked by intraday volatility on Monday in major indices.

In Europe, tech, auto, and travel stocks led the benchmark Stoxx Euro 600 Index down (-0.7%) after a U.S supplier issued a warning on sales and an incremental setback for energy supplies to the region. In the latest development, Russia partially curtailed oil supplies from one of the pipelines going through Ukraine due to payment issues. Investors were also wary of the upcoming CPI data in the U.S.

The Asian markets moved in divergent directions on Tuesday driven more by country-specific drivers. Equity Indices in Japan (Topix: -0.7%) and Hong Kong (Hang Seng: -0.2%) were down while in Korea (KOSPI: 0.4%), China (Shanghai Composite: +0.3%), and Taiwan (TAIEX: +0.2%) closed positive. Equity markets in India and Singapore were closed for national holidays.