Tadawul Review:

Tadawul All Share Index (TASI) recorded its fifth consecutive session of losses after undergoing a volatile session and falling by 85 points (-0.7%). The index opened at -0.3% below the last close and remained below the previous closing level for the entire session before ending at 12,408 levels. Only four sectors closed in the green, while many fell. The Energy and the Materials sector declined by -1.4% and -2.3%, respectively. MAADEN fell by -6.9% to close at SAR 111/sh. The Media and Entertainment sector increased by 3% due to SRMG which ended the session in gains of +3.5%. Trading volumes and values decreased by a whopping -19.4% and -22.9%, respectively. Oil prices have fallen below USD100/bbl mark, recording a decline of 22% since a high of USD128/bbl on 8th March 2022. The market, during the same period, has lost 444 points (-3.5%). The resurgence of COVID-19 cases in China and ongoing developments on the geopolitical front has put immense pressure on the oil prices which are likely to determine TASI’s direction in the near future.

Market Wrap International:

On Tuesday, U.S. shares rose ahead of the Fed's policy decision overnight, despite falling oil prices and slightly lower than expected producer prices. The S&P500 climbed +2.1% on broad-based buying, with technology (+3.4%) and consumer discretionary (+3.4%) contributing the most to gains, while energy (-3.7%) was the only sector to fall. The Dow Jones climbed 1.8%, the Nasdaq Composite gained 2.9%, and the Russell 2000 gained 1.4%. Ahead of the Fed meeting overnight, Retail sales will be an important economic statistic to look for where it is predicted to climb at a more modest rate of +0.4% for February relative to 3.8% in January.

In Europe, major markets ended the session lower despite a significant decrease in commodity prices over the past few days. Mounting COVID-19 cases in China and the upcoming US interest rate hike put pressure on the markets. Euro Stoxx fell slightly -0.1%, giving up most of the gains recorded in the last two sessions. FTSE 100 also dropped -0.2% led by oil and mining stocks. Similarly, DAX was marginally down -0.1%. The Bank of England rate decision will be in focus on Thursday where expectations are for the central bank to raise rates by 0.25% to 0.75%.   

In Asia, major markets have ended the session lower as COVID-19 cases surged in China combined with investors’ concerns of whether China is likely to support Russia in the ongoing conflict. In China, SHCOMP fell sharply by -5% on fears of further lockdowns. In Hong Kong, for the second consecutive day, Hang Seng slipped sharply, losing -5.8%. KOSPI and SENSEX fell by -0.9% and -1.3% respectively. However, Nikkei 225 managed to rise slightly by +0.2%.