Tadawul Review:

Tadawul All Share Index (TASI) remained flattish on Sunday, decreasing by just 16 points (-0.1%) to close at the 12,514 level. The index opened the session at 12,548, slightly higher than Thursday's closing level, and trading remained in the range of 71 points throughout the day. Despite 13 sectors closing marginally up, the TASI index slipped due to index heavyweights, namely, the Energy (-0.9%) and Banks (-0.2%) sectors closed down. Amongst the stocks, the shares of ARAMCO (-0.9%), Riyad Bank (-1.2%), and Maaden (-1.4%) influenced the index the most. Saudi Printing and Packaging and the National Medical Care y were the top gainers for the day, closing up by 9.6% and 7.4%. Trading volume witnessed an increase by 5% to reach 224mn shares, while the trading value decreased by -14% to reach SAR6.9bn.

 

Market Wrap International:

The global equity indices will likely search for fresh catalysts as the results seasons for the June-end quarter draws to a close and the surprise element from the last week’s US CPI and PPI data subsides. Investors' focus will likely shift to several economic data points due next week. In the U.S, the debate over the future path of interest rates has shifted once again on the timing of the reversal of interest rate hikes post-Sep monetary policy announcement. Tech and growth stocks provided a big lift in a risk-off rally last week. Data on retail sales (June-end results of big retailers), the housing market, and consumer sentiment are due next week which will provide fresh insight into the health of the U.S economy. Besides data points, the market will also keenly await the minutes of the recent Fed meeting.

In Europe, the U.K is likely to get the most attention with a flurry of economic data releases due next week which include CPI (real possibility of double-digit number), unemployment, and wage growth. Elsewhere, data on investor sentiment in Germany and GDP growth in Eastern European countries will also be released.

In Asia, investors will see important economic data from the two big economies in China and Japan. The Chinese central bank is also due to decide on a medium-term lending rate where a downward revision may further underscore the expectation of a reduction in the benchmark interest rate. In Japan, CPI and GDP data are due though investors don’t expect BoJ to make any change to the interest rate setting.