Tadawul Review:

Tadawul All Share Index’s (TASI) declined on Wednesday by 1.2% to close at 12,766 levels. The index opened with a negative gap of 10 points and continue its gradual decline till the end of the session. The majority of the sectors (12 out of 20) closed lower with Banks (-1.8%), Energy (-1.9%), and Materials (-0.7%) pulling the index down by 124 points. Amongst the stocks, Al Rajhi (-2.3%), ARAMCO (-2.0%), and Ma’aden (-4.9%) were the major drag while SABIC Agri (+2.7%) and Dar Al Arkan (+4.9%) provided support to the index. Trading volumes and value normalized today, after the implementation of the MSCI’s semi-annual review yesterday to 182mn shares (-53%) and SAR6.8bn (-63%).

 

 

 Market Wrap International:

US shares fell on Wednesday, while Treasury rates rose, as robust economic data showed the Federal Reserve had not yet slowed growth sufficiently to manage inflation, while Fed members projected a continuing aggressive course of rate rises. An unexpected increase in May manufacturing activity, along with a high level of job vacancies, raised fears that the Federal Reserve will need to remain assertive in order to slow the economy and prices. The S&P500 fell -0.75% in widespread weakness, with 81% of equities and all sectors falling, except for energy, which rose +1.76% for the session. The Dow Jones was down -0.54% along with the Nasdaq Composite which declined -0.72%.

European shares fell on Wednesday as a result of worse economic data ahead of the ECB policy meeting next week, where officials will aim to achieve an agreement on how quickly to normalize policy. German retail sales fell drastically by -5.4% in April, contrasting to predictions of a +0.5% increase The Euro Stoxx 600 fell -1.04%, while the DAX fell -0.33%, the CAC fell -0.77%, and the FTSE100 fell -0.98%, with all key benchmarks in the area down.

Asian markets remained mixed on Wednesday as investors assessed the easing of China’s COVID-19 restrictions and the persistent risk of surging global inflation. China’s shares edged lower with SH Composite inching down by -0.13% as data revealed that factory activity in May contracted. The Hang Seng also closed lower by -0.6% and the SENSEX was also down by -0.3%. In Japan, Nikkei 225 rose by +0.7% with Japanese machinery companies closing up. South Korean KOSPI was closed for Elections Day.