Tadawul Review:

Tadawul All-Share Index (TASI) closed Sunday's session up ‎‎+7 points (+0.1%) to close at 10,419 levels. TASI had started ‎the session negatively, down by -6 points from the previous ‎close, and TASI continued to decline during the first hours of ‎trading as it reached its intraday low, down by -48 points, but ‎then the index began to build its positive momentum until it ‎reached its intraday high, up by +26 points in the last hours ‎of trading before partially reducing its profits. In general, 12 ‎out of 20 sectors closed in the green zone, while 95 stocks ‎rose and 104 fell. Food and beverages (+1.6%), Consumer ‎Services (+2.6%), and Energy (+0.2%) sectors contributed the ‎most to the stability of the index, while Banks (-0.2%), ‎Telecom (-0.8%), and REITs (-0.4%) were a drag on the ‎index. Among stocks, Alinma Bank (+2.2%), Saudi British Bank ‎‎(+2%), and Americana (+6.8%) contributed most to the rise ‎of the index. The trading volume activity increased by 22% ‎DoD to reach 144mn shares, while the trading value decline ‎by 23% DoD to reach SAR2.7bn.‎‎‎

 

 

Market Wrap International:

The global equity markets are likely to remain tentative next ‎week with investors closely tracking the CPI report in the U.S ‎and U.K, interest rate in China and GDP growth in Japan. ‎Besides, the recent geopolitical tension between the U.S and ‎China will also likely remain in the limelight. In the U.S, the ‎upcoming CPI report (expected: 0.5%) due on Wednesday ‎may serve to further reaffirm earlier remarks of the Fed ‎Chairman on a bumpy road to the disinflation process. A ‎blowout job market report is one such bump which has ‎already shifted market view on the peak interest rate and the ‎timing of first rate cut. Earnings season is not over yet and ‎may continue to be a source of excitement for select sectors.‎

In Europe, the investors will track CPI and unemployment ‎data in the U.K and industrial production for the region. Both ‎CPI and unemployment data may highlight the room for ‎further rate hike in the U.K. Many of the indices in the region ‎are trading close to all-time highs (Stoxx Europe 600, FTSE-‎‎100, DAX) and may see further downside risk in near-term.‎

In Asia, appointment of the governor of Bank of Japan and the ‎GDP growth are the two important updates for the upcoming ‎week, alongside policy decisions by the Chinese authorities on ‎the interest rate. Investors will also track economic data ‎points which may highlight the strength of economic recovery ‎in China. All in all, markets may move more sideways for most ‎part of the week.‎