Tadawul Review:

Tadawul All Share Index (TASI) declined on Tuesday and lost 140 points (-1.1%) to close at the level of 12,421. The index opened the day 19 points lower than the previous close. TASI rose 45 points in the first hour of the session, but the index quickly began to fluctuate, influenced by the declines of the major global indices, and despite the rise in Brent oil prices, it did not contribute to the rise of the index, as the index began to decline and gave up its gains to reach its lowest level of the day, which was the closing level. However, the downward slide was broad-based as 19 out of 20 sectors closed negative, 166 shares fell, and 40 shares rose. The usual suspects, namely the Materials (-2.1%), Banks (-0.8%), and Telecommunications (-2%) sectors, cumulatively pulled the index down by 87 points. Al-Rajhi Bank (-1%), Aramco (-0.9%) and SABIC (-2.3%) put the most pressure on the index. The top gainers for this session were Bupa Arabia for Cooperative Insurance (+3.6%) and the Electrical Industries Company (+3.3%). Trading activity witnessed an improvement in the volume and value of trading for the second day in a row by +13% and +10%, reaching 157mn shares and SAR6.4bn.

 

Market Wrap International:

The global equity indices sustained another session of losses on Tuesday, with more economic data pointing to a steep slow-down in the European region and the recent moves in the bond and currency markets dragging the sentiments. In the U.S, the S&P 500 (-0.2%) and Nasdaq Composite remained unchanged underwent a cautious session with both indices trading close to respective previous session close , Seven of the 11 major groups in the S&P 500 fell, led by real estate and health care. The 10-year bond yield in the U.S. increased another 4bps to remain above the 3% mark. The dollar index showed intraday volatility and came off from its multi-year high levels post the release of PMI data for Aug-22 showing a bigger than expected drop-in economic activity.

In Europe, the Stoxx Europe 600 Index was swayed by record drop in PMI data in the region, GDP data in France (showing contracting) and higher energy prices. The index fell by 0.4% on Tuesday, recording its third session with straight losses. The combination of higher CPI and slow-down in economic activity has put the central bank in a tough spot as it struggles to rein in inflation.

In Asia, the latest currency moves and further selling by foreign investors dragged the indices in the region. India’s SENSEX (+0.4%) was a sole outlier in the region due to xx. Indices in Japan (Nikkei:-1.2%), Korea (KOSPI: -1.1%) and Hong Kong (HangSeng: -0.8%) suffered losses while Shanghai Composite in China was largely unchanged.