Tadawul Review:

Tadawul All Share Index (TASI) took a massive battering on Thursday, shedding a whopping 544 points (-4.1%) to close at 12,835 levels. The decrease was the largest since the market lost 4.5% on Nov 28th last year. The decline in the index was broad-based with all the sectors closing down and shares recording an advance to decline ratio of only 0.1. The stock market carnage was led by the Bank, Materials, and Telecom sectors which contributed 322, 47, and 21 points to the index fall. Trading volumes and value managed to recover by 28% and 18% to 210mn shares and SAR10.2bn. TASI has shed 980 points (7.1%) in the last three days on the back of the easing oil prices (down from a high of USD128/bbl) and global inflation concerns. Investors will remain watchful in the near term, only looking to take an entry position in stocks that have taken a beating but are likely to post strong 2Q2022 results.

 

Market Wrap International:

Despite a Friday rally, US equities fell for the sixth week in a row, the longest losing sequence since 2011, as the market flirted with bear-market territory on lingering inflation fears and concerns about the pace of Federal Reserve rate hikes. The S&P 500 Index rose +2.4% on Friday as investors swooped in to buy beaten-down risky assets after the previous session's slide brought the index close to an almost 20% drop from its January high. The Nasdaq 100 gained +3.7% as mega-caps Apple and Microsoft rallied, but the tech-heavy index remains in bear market territory, down more than 25% from its November high. The index is on its longest losing streak since 2012.

 

On Friday, European stocks had their best day in over two months, as bargain hunters snapped up shares that had not been this low since the outbreak began. The Stoxx Europe 600 Index closed +2.1% higher, as tempting valuations trumped fears about increasing interest rates and soaring inflation. Defense stocks such as real estate, telecommunications, and utilities lagged, while travel and leisure, technology, energy, and consumer products led the gains. Individual movers included Deutsche Telekom AG, which gained after lifting its 2022 guidance following robust growth in Europe and the United States.

 

The MSCI Asia Pacific Index climbed +1.8%, tracking US futures, as Federal Reserve Chair Jerome Powell indicated that rate hikes of more than 50 basis points were unlikely. SoftBank, along with Tencent and TSMC, saw one of the greatest gains following its results. Traders said Friday's rally was fueled by the unwinding of short positions following the previous selloff, with many remaining concerned about how China's anti-virus efforts could exacerbate the already bleak global economic outlook. The Nikkei gained +2.6%, led by increases in Tokyo Electron and SoftBank on good profits. The Hang Seng Technology Index in Hong Kong increased by +4.5%.