Tadawul Review:

Tadawul All Share Index (TASI) fell for the second consecutive day to close the week down, by 161 points (-1.3%) at 12,605 levels. The market maintained its downward momentum from the start of the session hitting a low of 150 points during the day before recovering. However, TASI witnessed a decline of 57 points during the closing auction sinking the index further. The majority of the sectors (16 out of 20) closed lower with Banks (-1.3%), Materials (-1.3%), and Energy (-2.1%),  pulling the index down by 109 points. Amongst the stocks, ARAMCO (-2.1%), Al Rajhi (-1.2%), and Riyad Bank (-3.3%) were the major drag. Trading volumes and value declined by 2% and 4% to 179mn shares and SAR6.6bn. The week ended was a volatile one for TASI consisting of 2 negative and 3 positive sessions. Despite the headwinds, the market managed to increase by 0.6% WoW (75 points). Going forward, stability in oil prices remains the key, which have come down by 6% in the last two sessions on reports that KSA will look to increase its oil production.

 

Market Wrap International:

The S&P 500 Index resumed a series of weekly losses on fears that the Federal Reserve would maintain its tempo of interest-rate rises to keep inflation under control. The market index fell 1.2% this week, the eighth dip in the past nine weeks. Equities fell in low-volume trade Friday as the US unemployment rate remained at 3.6% but payrolls increased more than expected, reinforcing expectations for Fed hawkishness in the long run. The Dow Jones Industrial Average and the Nasdaq Composite Index both fell 0.9% and 1.0% this week, reverting to a previous trend of weekly losses.

European equities fell on Friday as a result of stronger-than-expected US hiring statistics, which rekindled concerns about the outlook for interest rates as the Federal Reserve battles inflation. Because the UK market was closed for a national holiday, trading volumes were light. On the day, the Stoxx Europe 600 Index fell 0.3%. Following a report that Tesla Inc. Chief Executive Officer Elon Musk stated the electric automaker has to slash personnel and freeze recruiting, tech companies fell on the index, increasing concerns about an economic slowdown.

As investors awaited US non-farm payrolls for hints on the direction of interest rates, Asian equities gained, set for a third consecutive week of gains. The MSCI Asia Pacific Index rose as high as 0.7%, boosted by oil and materials companies such as BHP Group and Reliance Industries. Japan and Australia had the strongest performances in the area, while markets in China, Hong Kong, and Taiwan were closed for a vacation.