Tadawul Review:

Tadawul All Share Index (TASI) closed flat on the last trading day of the week losing just 9 points (-0.1%) to settle at 11,311 levels. The Thursday’s trading session turned out to be a very volatile one with the index oscillating constantly around 11,321 levels in the range of 144 points. The session was marked by lower trading activity with volumes and value declining by 35% and 36% to 144mn shares and SAR5.3bn respecrtively. Materials (-0.5%), Banks (-0.1%), and Utilities (-1.2%) were the major drag on the index while Food & Beverages (+1.6%) and Telecom (+0.9%) provided much needed support. Saudi Fisheries and Tihama Advertising were the major gainers for the day closing at their upper circuit of 10.0%. In addition to losing 779 points in the week befor e (-6.4%), the index lost a further 514 points (-4.3%) in the last week taking the cumulative losses to 1,293 points (-10.5%) in the last 10 trading sessions. The investors continue to remain cautious as they await clarity on the looming global recession threat and its contagion effect on oil prices.

Market Wrap International:

The global equity indices made a strong comeback on Friday erasing most of the losses suffered during the week. The recovery in stock was led by growing chatter over a slower and shallower path of an interest rate hike by the central banks due to the higher possibility of recession ahead and the drop in long-term consumer inflation expectation gauge per the latest economic data. Oil prices bounced back on Friday and closed at the same levels as seen last week. In the U.S, the S&P 500 index jumped 3.1% driven by energy and financials names. The tech-heavy Nasdaq Composite Index also rose by 3.3% on Friday. Investors' confidence was also boosted by the latest report of all US banks passing the Fed stress test for a severe recession.

In Europe, the benchmark Stoxx Euro 600 index jumped 2.6% on Friday with almost all major sectors recording a gain. The increase on Friday merely allowed the index to close the week with a 2.4% gain. Valuation in European stocks gained traction following what many investors believe to be an overreaction over the release of economic data on PMI and consumer sentiment in the region.

In Asia, tech stocks led the rally in the region. The expectation of monetary and fiscal stimulus to support growth after easing of COVID-19 related restrictions also supported the indices. KOSPI Index in Korea (+2.3%) made a more pronounced move on Friday on renewed interest in tech names. Indices in Hong Kong (Hang Seng: +2.1%), China (SH Composite: +0.9%), Japan (Topix: 0.8%), and India (SENSEX: 0.9%) also surged driven by broader global macro themes