Tadawul Review:

Tadawul All Share Index (TASI) fell for the seventh straight ‎session on sunday and lost another -24 points (-0.2%) to close ‎at 11,351 levels. TASI opened the session posativly by 33 ‎points from the previous but then gradually declined during ‎the session to close at its intraday low. In general, 15 out of ‎‎20 sectors closed in the red zone, while 154 of 223 shares fell ‎and 54 rose. Food and beverages (-3.4%), Materials (-0.3%), ‎and Health care equipment and services (-0.9%) sectors ‎contributed the most to the index's 23-point fall. Stockwise, ‎Savola (-5.5%), Almarai (-2.3%), and Al Rajhi Bank (-0.3%) ‎were the major contributors. The trading activity witnessed a ‎decline in volume and value by -35% and -34%, respectively, ‎to reach 169 shares and SAR3.8bn in value traded. TASI has ‎lost cumulatively 555 points in the last seven sessions.‎

 

 

Market Wrap International:

The global equity markets may continue to see a relatively volatile period in the upcoming sessions. The key concerns which had driven volatility in the last week are still persisting. The economic data release may serve to further divide investors views on (i) soft lending in the U.S economic activity and the implications of the rating downgrade last week, (ii) the effects of stimulus in China and depth and length of impending recession in the euro region and the ability of the authorities in Japan to sustain the ultra-loose monetary policy stance without inviting rating event. In the U.S, the key economic data is centered around CPI/PP and consumer sentiment. Last week’s rise in 30-year bonds has emerged as a key concern and the upcoming auction of the same tenure may further highlight the same.

In Europe, the GDP growth in the UK for 2Q, industrial data in Germany and CPI data in a number of countries are the key focus areas. Following the recent policy action by the ECB and BOE, the upcoming data on growth may put pressure on central banks to rethink current policy stance.

 

In Asia, the rise in yields on 10-year bonds in Japan and the host of economic data in China (CPI, PPI, export, credit) may point to the need for a change in current monetary and fiscal response in the two countries respectively. In addition, the reported new regulations in the U.S to restrict investment by the U.S companies in China may prove to be a major sentiment dampener for the regional equity markets.