Tadawul Review:

Tadawul All Share Index (TASI) remained unchanged on Sunday, at 12,198 levels. TASI opened the session down -3 points, saw a significant initial decline, but later recovered and maintained a steady performance for the rest of the session. In general, 15 out of 21 sectors closed in the red zone, and 160 shares fell while 60 rose. Banks (-0.4%), Materials (-0.7%), and Real Estate (-2.1%) sectors contributed the most to the index fall. Stockwise, SNB (-1.5%), Makkah Construction (-8.0%), and Sabic (-1.2%) were the major contributors. The trading activity witnessed a decline in volume and value of -24% and -38%, respectively, to reach 200mn shares and SA4.4bn in value traded.

 

 

 

Market Wrap International:

In the U.S. markets, a rebound that has taken the U.S. stock market to record highs last week may have further to run, if history is any guide. Investors are waiting for more clues on the U.S. interest rate trajectory following cautious remarks from Federal Reserve officials. Despite signs of easing inflation, uncertainty remains.

In Europe, investors look ahead to key data releases next week, especially the inflation data from the UK, which could point to how quickly the Bank of England may cut interest rates as European Central Bank board member advocated caution about further interest rate cuts after a likely first one in June.       

In Asian markets, despite an initial dip in Alibaba shares following the company's earnings report, overall market sentiment has improved thanks to positive earnings. However, it is anticipated that Chinese stocks will continue to underperform and may be considered value traps by investors.