Tadawul Review:

Tadawul All Share Index (TASI) closed slightly higher on ‎Sunday’s session by 8 points at 11,760 levels. TASI opened ‎the session on a positive note with 4 points up, then started ‎to decline, reaching its intraday low in the first trading hour. ‎However, TASI recovered and gradually rose with some ‎fluctuations until the end of the session. In general, 7 out of ‎‎20 sectors closed in the green zone, while 56 of 223 shares ‎rose and 158 fell. Banks (+0.4%), Materials (+0.2%), and ‎Telecom (+0.5%) sectors contributed the most to the index's ‎‎+20-point rise. Stockwise, Al Rajhi Bank (+0.7%), Sabic ‎‎(+1.4%), and Elm Co.  (+4.3%) were the major contributors. ‎The trading activity witnessed a decline in volume and value ‎of -34% and -24%, respectively, to reach 168mn shares and ‎SAR4.3bn in value traded.‎

 

 

Market Wrap International:

The next week promises to be a week of central bankers with policy decisions due from four central banks (FED, ECB, BOJ, BOE). The rate decision will come in the midst of earnings season and may quickly see the impact of any policy action dilute fairly quickly. All in all, markets will likely find it hard to make any significant move in the near-term. The FED is all set to announce another 25bps hike in policy rate at a meeting due on 25/26th July. However, investors are uncertain on the next Fed’s move i.e. another hawkish pause or end of tightening cycle. The opinion is dividend and the comments from Fed’s Chair would be closely watched.

In Europe, both ECB and BOE are expected to lift policy rate by another 25bps. The Governing Council of ECB is likely to commit to raising the rate by another 25bps in September. From the BOE's point of view, the inflation reading in June-23 is quite encouraging though the bank will have to stick to its previous decision of another jumbo rate hike.

In Asia, the combination of currency and yield move suggest the possibility of the Bank of Japan making a change to its long-held ultra loose monetary policy. Beyond BoJ, markets will likely keep an eye on likely new measures in China to support economic growth and economic data in both Japan and China.