Tadawul Review:

Tadawul All Share Index (TASI) broke its four-day losing streak to post a gain of +0.6% (72 points) closing at 11,417 levels before the Eid-ul-Adha holidays. The index rose gradually since the start of the session on Wednesday (6th July 2022) touching a high of 76 points in a thinly traded session. The trading activity remained slim when compared to a 3-month average, however, volume and value traded managed to improve by +0.6% and 15% DoD to 144mn shares and SAR4.9bn. The change in course in TASI was driven by Banks (+1.9%), Health care (+1.7%), and Real Estate (+0.8%) sectors. Amongst the stocks, Al Rajhi (+2.0%), SNB (+1.7), and Riyad Bank (+2.8%) contributed the most to the index rise. TASI has managed rise by +5.8% (662 points) when compared with the Eid-ul-Adha holiday period last year. The major events that have taken place during this period include the uplifting of COVID-19 precautionary measures, the rapid rise in crude oil prices, and the increase in interest rates by SAMA. Overall, uncertainty persists in the stock market owing to global recession concerns resulting in plunging oil prices.

Market Wrap International:

The global equity indices drifted down on Tuesday with investors setting their eyes on the upcoming inflation data in the U.S (due on Wednesday) and GDP data in China (due on Friday) to gauge potential changes in the ongoing debate on recession and rate hikes. Brent oil settled below the USD100/bbl mark for the first time since April-22. In the U.S, the benchmark indices slipped by 0.6-0.9% on Tuesday after struggling to find a direction for most of the session. Latest statements from the multiple corporate leaders on upcoming earnings seasons have added to investors’ worries about the risk of further downgrades in consensus earnings estimates.

In Europe, the benchmark Stoxx Euro 600 Index managed to partially pare losses from the previous session and closed with +0.5% gains. Investors drew confidence from the latest moves in the currency market where Euro stood its ground above parity with the US dollar despite intraday volatility on Tuesday. The gains came despite a somber report from Germany highlighting investors' sentiments plunging to levels last seen at the outset of COVID-19.

In Asia, almost all major markets faced losses with concerns of further regulatory risk in China for IT names and a resurgence of COVID-19 infections. The spread of sub-variant of Omicron COVID-19 variant has stoked fears of new lock-down measures by the Chinese authorities. Major equity indices in the region slipped by 0.8-2.7% on Tuesday as a broader regional benchmark, the MSCI Asia Pacific Index hit a two-year low.