Tadawul Review:

Tadawul All-Share Index (TASI) closed down for the sixth day in a row by -102 points (-1%) and closed at its lowest level since December 12, 2022 (53 trading days) at 10,052. TASI began Sunday’s session quietly, rising slightly (+3 points) from the previous close, but soon succumbed to selling pressures, causing the index to fall for the remainder of the session hours due to the decline in the main global markets. In general, 17 out of 20 sectors closed in the red zone, while 37 stocks rose and 178 fell. Banks (-1.6%), Energy (-1.3%), and Materials (-0.5%) sectors were the major drags on the index and contributed a total of -73 points. Stocks-wise, Al Rajhi Bank (-1.8%), Aramco (-1.3%), and Saudi National Bank (-1.5%) pulled the index down the most. The trading activity also witnessed a decline in the volume and value of trading by 23% and 31%, respectively, to reach 106mn shares and SAR2.8bn. After falling -4.7% (521 points) in the past six sessions, the index may seek to reverse the course and can take support from an important psychological level of 10k.‎

 

 

 

Market Wrap International:

The global equity markets will likely see a more data-dependent next few sessions which can induce higher volatility. Having seen corrections for most of recent sessions following the release of economic data and the comments from the central banks, the investors will likely scout for opportunities. Dec-end earnings season is largely coming to draw and may not drive big market moves. The spike in the treasury yields in the U.S will likely have a knock-on impact on yields on other sovereigns and currencies and even growth outlook. Economic data remains crucial to further substantiate market’s fears of further hikes in interest. To this end, the Consumer Confidence Index, Housing and ISM Manufacturing are the important data points due for the next week in the U.S. Besides, investors will also keep a close eye on Fed Speak for further clues on interest rate hikes.

In Europe, inflation data for the region and a number of countries is due and will likely dominate the headlines. In the backdrop of not-so-encouraging growth data in Germany last week, any surprise in inflation data may further increase the risk of deeper recession in the region.

 

In Asia, the market will assess the manufacturing and other monthly data in China for the strength of economic recovery post easing of COVID-19 restrictions. GDP growth in India for 4Q, and Industrial Production in Japan are other two important data points in the region.