Tadawul Review:

Tadawul All Share Index (TASI) closed in red following six consecutive sessions of gains, recording a loss of 63 points (-0.5%) as investors preferred booking profits. The Energy sector recorded a loss of -0.5%, led by ARAMCO. Materials fell 1.2% on volatility in commodity prices. In its second session since its debut, AMAK maintained its upward momentum rising by +2.8%. The Capital Goods sector was a major performer with +3.3% jump, Trading volumes and values fell by -8.1% and -5.5%, respectively while Advance to Decline ratio came in ~1.0. Oil prices have regained ground (+2.9) ahead of OPEC+ meeting on Thursday on future production increase. The index may start showing sideways moves given a strong performance of the index in most of 1Q2021 and not-so-convincing valuation for the overall market.

Market Wrap International:

The global equity markets came under renewed volatility as hopes of early resolution of the Ukraine-Russia war faded following a statement from the Russian officials. Commodity prices rebounded while treasury yields inched higher. In the U.S, the four-day rally in the S&P 500 index lost steam as the index fell by 0.6% led by consumer discretionary and tech names. Other major indices followed suit with Nasdaq and Dow Jones declining by 1.2% & 0.2% respectively.

In Europe, inflation remains a major theme with many countries reporting record-breaking CPI numbers. No major positive news on the war front and an uptick in commodity prices also weighed on. The Stoxx Euro 600 index fell 0.4%, breaking its three-day rally. Other major indices in the region were also under pressure (DAX: -1.5%, IBEX 35: -0.7%) barring FTSE100 which rose 0.5%.

In Asia, most of the major markets closed in the green zone. Asia-Pacific stocks were mostly higher as investors eyed developments surrounding the war in Ukraine. In China, SHCOMP recovered from the previous session and jumped +2.0%. The Hang Seng index also underwent a positive session, increasing by +1.4%. In Japan, however, the Nikkei 225 fell by -0.8% to close below its previous close. KOSPI and SENSEX maintained their upward momentum, recording gains of +0.2% and +1.3%, respectively.