Tadawul Review:

Tadawul All Share Index (TASI) underwent a turbulent trading session to lose 100 points (-0.1%) closing at 11,874 levels. The market opened below its previous day's close and continued to move downwards trading in the range of 100 points while being subjected to erratic swings throughout the day. The majority of the sectors closed lower (16 of 20) and the same was reflected in the advance to decline ratio of 0.40x. The usual suspects namely Banks (-1.4%), Materials (-0.8%), and Utilities (1.8%) pushed the index down by 82 points cumulatively. Stocks-wise, Al Rajhi (-1.0%), Riyad Bank (-3.4%) and SNB (1.3%) contributed the most to the index decline. Trading volume recovered rising by 7.1% to 164mn shares while trading value remained flat DoD at SAR5.1bn. Investors continue to remain cautious keeping a keen eye on the developing global macroeconomic situation as well as the ongoing result season.

 

Market Wrap International:

The global equity indices pared some of the gains from last week and mostly closed lower. All eyes remained on the upcoming FOMC meeting later this week with the expectation of a minimum 75bps hike in the upcoming now well entrenched. In the U.S, the benchmark indices seesawed through the session but managed to close with little change. S&P 500 and Dow Jones Industrial Average erased intraday losses and closed in positive while Nasdaq Composite erased intraday losses of 1.2% to close down by only 0.4%. Energy drove the index higher on the latest gas export data and energy prices.

In Europe, the Stoxx Euro 600 Index pared intraday gains of 1.2% to close at 0.1%. The latest comments from an ECB board member and the risk of another gas supply suspension to Europe dragged the sentiment. Euro consolidated its recent gains and closed with minor change (+0.1%).

In Asia, indices snapped a five-day rally despite the latest assurance from the Chinese State Council to continue supporting the internet economy and reports of the incorporation of state funds to support the struggling property developers. Chinese property stocks rallied on the report.  Earnings season is likely to get underway in full swing this week and investors will closely watch for possible damage to margins from high commodity prices and U.S dollar appreciation. Key indices in the region fell by 0.2%-0.8%.