Tadawul Review: 

Tadawul All Share Index (TASI) declined slightly by 1 point on ‎Sunday’s session, ending a 6-day gain to close at 11,396 levels. ‎TASI opened the session negatively with a 4-point loss, then ‎started to increase in the first trading hour, reaching its ‎intraday high by 43 points from the previous close, before ‎TASI started to decline for the rest of the trading hours. In ‎general, 11 out of 20 sectors closed in the red zone, while 91 ‎of 223 shares fell and 120 rose. Utilities (-1.4%), Insurance (-‎‎1.1%), and Energy (-0.2%) sectors contributed the most to ‎the index's fall by 9 points. Stockwise, Saudi National Bank (-‎‎0.9%), Aramco (-0.3%), and ACWA Power (-1.7%) were the ‎major contributors. The trading activity witnessed a decline in ‎volume and value of -11.1% and -22.6%, respectively, to reach ‎‎168 shares and SAR5.5bn in value traded.‎

 

 

 

Market Wrap International:

The next week promises to be an important period for the markets in terms of economic data release and policy decisions. Overall, markets are likely to experience a more choppy period given the risk of surprise in the data and recent performance of key indices. In the U.S, the inflation data (CPI, PPI, for May-23 will be in the limelight and may serve to further reinforce the market view of possible status quo in the mid-June monetary policy meeting. Analysts expect core inflation in May-23 to remain unchanged MoM at 0.4%. The S&P 500 Index trades at technical bull territory (20% return from the low) with major contribution from the tech names.

In Europe, the investors are expecting the regional central bank (ECB) to raise the interest rate by another 25bps despite lingering concerns on growth data and future outlook. Already revised data for the 1Q23 shows the region has undergone a technical recession. Growth data in Germany, and the U.K and CPI numbers for the region are also important updates for the investors.

 

In Asia, China and Japan will occupy the investors attention next week. In China, a number of important data updates (industrial, retail sales) are due and may highlight the need to come up with fresh stimulus measures. In Japan, the central bank will decide on the monetary policy on Friday. Analysts are not expecting the central bank to make any change in its current policy stance.