Tadawul Review:

Tadawul All Share Index (TASI) got off to a bad start post the Eid-ul-Adha holidays losing 127 points (-1.1%) to close the day at 11,290 levels. The market traded in a wide range of 241 points constantly swinging above and below its previous close the entire day before dropping a massive 97 points during the closing auction. The decline was led by the Materials sector (-3.2%), followed by Energy (-3.3%) and Food & Beverages (-2.8%) sectors. Index heavyweights namely ARAMCO (-3.4%), Al Rajhi (-0.6%), and Maaden (-4.5%) pulled the index down the most. Trading volumes remained lackluster further dropping by 6.1% to 135mn shares while value traded rose marginally by 1.9% to SAR5.0bn. A multitude of factors kept the investors at bay including weakening oil prices due to concerns over global oil demand. In the near term, uncertainty will continue to prevail over the market owing to a lack of positive triggers and concerns over the global recession.

 

 

 

 

Market Wrap International:

The global equity markets were under pressure following the release of the above-expected CPI print in the U.S on Wednesday and the Euro briefly fell to below parity against the USD. In the U.S, CPI data for the month of June-22 came in at 9.1% exceeding the top range of consensus expectations. The latest data sent bond yields crawling up as the investors believe a 75bps hike by Fed in its upcoming meeting is a done deal. The benchmark equity indices in the U.S fell by 0.2-0.7% on Wednesday.

In Europe, the Stoxx Euro 600 Index was reeling from pressure due to Euro weakness for most of the session. The release of CPI data accentuated the intraday decline of 1.4% to 1.9%, however, the market pared some losses before the close recording a decline of -1.0%. The concerns about potential gas shortages in Europe over the coming winter season also weighed on the sentiments. 

In Asia, equity indices found support from two-year low levels on dip buying and talks of government support in Taiwan. Tech names were particularly bid up though energy stocks were under pressure. India’s Sensex was down 0.7% DoD, ditching the broader regional trend due to pressure on the currency. Indian Rupee made a new low for the third straight session on Wednesday.