Tadawul Review:

After seven consecutive sessions of gains, Tadawul All Share Index (TASI) decreased by 106 points (-0.8%) due to massive profit-taking closing at 13,540 levels. Almost all the sectors closed in the red zone. The Energy sector fell by -0.8%, as SAUDI ARAMCO recorded a loss of -0.8%. The Materials sector further decreased by -1% as MAADEN lost -5.4%, while CHEMANOL and ALUJAIN closed in gains of +5.4% and +3.5%, respectively. The Food & Beverages sector ended the session with a fall of -1.6% as all the firms within the sector recorded losses ranging from -1% to -3%, except for TANMIAH which climbed +3.8%. The Utilities sector was the top loser out of all the sectors as it recorded a loss of -1.8% attributed to the losses of ACWA POWER and SAUDI ELECTRICITY that closed in the negative by -3.1% and -1.6%, respectively. Trading volumes and values ended the session with a slight fall of -1.1% and -6.1%, respectively. 

 

Market Wrap International:

Despite U.S. producer prices reaching to their highest level since 2010 and above analyst expectations, U.S. shares climbed on Wednesday as bond yields fell. On Wednesday, the S&P500 rose +1.1% on broad-based buying, with 80 percent of equities up, led by technology (+1.6%), consumer discretionary (+2.5%), and communications (+1.3%). The Dow Jones gained 1.0%, while the Nasdaq Composite gained +2.0%. JP Morgan's stock fell -2.8% after the company reported a US$524 million loss in the first quarter due to market impact from Russia's invasion of Ukraine. Producer prices in the United States increased by +1.4% in March, up from +0.8% the previous month, beating the +1.1% forecast, with core prices also growing and beyond expectations.

European stocks were generally mixed ahead of the start of Q1 2022 earnings, as inflation in the United Kingdom hit a three-decade high. The Euro Stoxx 600 was flat, while the CAC and FTSE100 both gained +0.1%. The DAX on the contrary fell by -0.3%. Inflation in the United Kingdom increased by 7% in March from a year earlier, beating the prediction of +6.7% and the previous figure of +6.2%, while core prices increased by +5.7% from +5.2%, also beating the forecast of +5.4%. The European Central Bank will announce its policy decision tonight, with no changes expected and analysts predicting that ECB President Lagarde will be ambiguous on future rate hikes.

 

In Asia, the majority of equity markets ended Wednesday’s session in the green zone after the release of key economic data. In China, with the release of major economic data which were lower than expected due to the lockdown in major cities, SHCOMP fell by -0.8%. With many Hong Kong banks slated to fully reopen their stores next week after data showed improvement in vaccination rates, led Hang Seng to end +0.3% higher. The Nikkei 225 and KOSPI ended on an optimistic note with both surging by +1.9%.