Tadawul Review:

Tadawul All-Share Index (TASI) ended its three-day winning ‎streak and fell -39 points (-0.4%) on Sunday, closing at 10,252 ‎levels. TASI index had started the session negatively and ‎continued its fluctuations between gains and losses in the ‎index, as the TASI was trading in a range of 83 points. TASI ‎reached its intraday high in the first hour of trading, achieving ‎‎+26 points from the previous close, while it reached its ‎intraday low at the end of the last hour of trading, down by -‎‎56 points from the previous close. In general, 10 out of 20 ‎sectors closed in the green zone, while 102 shares rose and ‎‎96 fell. Banks (-0.6%), Energy (-0.6%), and Utilities (-0.9%) ‎sectors were the major drags on the index and contributed a ‎total of -28 points. Stocks-wise, Aramco (-0.6%), Riyad Bank ‎‎(-2.5%), and Saudi British Bank (-2.1%) pulled the index down ‎the most. The trading activity also witnessed a decline in the ‎volume and value of trading by 49% and 57%, respectively, to ‎reach 117mn shares and SAR2.9bn. The index is likely to ‎move side-ways in absence of any major trigger. ‎

 

 

Market Wrap International:

The preceding week was all about surprises on monetary policy and ‎the guidance on future rate path. The central banks’ decision last ‎week has effectively dashed hopes of a pivot in interest rate and ‎lower peak. The impact of surprises was reverberated across all ‎asset classes and the region both, in particular in the last three ‎sessions. This is the backdrop that awaits investors for next week. ‎Cautiousness may continue to remain a dominant theme in near-‎term even after a steep price reaction to surprise. For the U.S ‎market, Personal Consumption Expenditure Index, a Fed preferred ‎gauge for inflation, is due next week and will likely highlight the ‎impact of policy measures on the level of inflation. Other important ‎data next week relates to housing (new starts, building permits, and ‎home sales) which investors will closely track for further signs of ‎easing of demand.‎

In Europe, the comments from ECB and BOE in the post rate hike ‎decisions has effectively raised expectations of more rate hikes, ‎increasing the possibility of deeper and prolonged economic slow-‎down in the region. The investors’ sentiment will continue to be ‎weighed down by the new guidance in near-term.‎

In Asia, all eyes will be on the Bank of Japan which will announce ‎its decision on interest rate this week. The latest comments by ‎central banks and level of interest rates in developed economies ‎have increased pressure on BoJ to abandon its super ‎accommodative policy rates. Updates on COVID-19 infections and ‎decisions for economic re-opening will be another important theme ‎to track in the region. ‎