Tadawul Review:

Tadawul All Share Index (TASI) reasserted its positive momentum on Thursday on the back of higher commodity prices (oil consolidated gains above USD100/bbl) and strong momentum in Asian markets. The index gained 148 points to close at 12,592. The positivity in the market was visible from the start of the session, which was sustained till the close. Banks (1.2%), Materials (2.2%), and Energy (0.6%) , the three heavyweight sectors for TASI, provided the push (cumulative contribution:101 points). The index move was fairly broad-based, with the advance to decline ratio coming in at 5:1. However, trading activity fell on a DoD basis, with volume and value traded falling by -12% and 2%, respectively, to 135mn shares and SAR5.7bn. Al Rajhi Bank, Maaden and SABIC were the top contributors to the index gain. The top gainers for the session were National Gas &Industrialization and Saudi Printing and Packaging, each up 10% for both of them. The index has come close to the levels where it had earlier retreated. The backdrop for TASI is still positive and though volatility in international markets remains a major drag.

 

Market Wrap International:

The much-awaited speech of the Fed’s Chairman on Friday at an annual retreat of central bankers at Jackson Hole delivered a fatal blow to already fragile investors’ sentiments and with equity indices at both sides of the Atlantic going in a tailspin. The latest guidance of higher for longer interest rates has produced a risk-off mode across the asset classes with bond yield and gold prices rising. In the U.S, the key indices lost 3-4% in a single session on Friday. All but five stocks in S&P 500 managed to close in green on Friday.

In Europe, the comments from Fed , the latest currency move whereby Euro has stubbornly  stayed below parity, and CPI print has forced the central bank official to advocate for a significant spike in interest rate. The benchmark Euro Stoxx  600 Index dropped by 1.7% on Friday with all major markets in the region going for a toss.

Asian markets were in a different mode altogether ahead of the Jackson Hole speech. The announcement of a significant stimulus by the Chinese authorities on Thursday and markets reports of talks to avoid delisting of Chinese tech stocks sustained the rally for a second straight session in the region. All major indices, barring Shanghai Composite (-0.3%) in China, moved higher with HangSeng (+1%) in Hong Kong being a major outlier.