Tadawul All Share Index (TASI) snapped its four-day losing streak to record gains of 106 points (+0.9%) to close at 11,940 level. The index opened on a positive note and reached the intraday high above 12,000 mark (+63points) before retreating and reducing the gains to 74 points. In general, 17 out of 20 sectors closed in the green zone, while 177 stocks rose and 29 fell. The index gains were led by Banks (+0.9%), Materials (+0.9%), and Energy (+1.5%) sectors, which contributed to the index's rise by 68 points. Stock-wise, Al Rajhi Bank (+1.4%) led the charge, followed by Aramco (+1.5%) and the Saudi National Bank (+1.2%). Lazurde Company for Jewelry (+10%) and Seera Group Holding (+7.1%) were the top gainers on Sunday. The trading activity witnessed a decline in the volume and value of trading by -4% and -16% to reach 121mn shares and SAR4.5bn. TASI is likely to show more sideways moves in coming sessions due to general lack of triggers for investors. Stability in oil prices and international markets remain important for the market to build any momentum on the upcoming Sep-end result season.
The global equity indices are bracing for a data-heavy period next week with economic data on inflation and consumer sentiment in major economics (US, UK, Germany) set to be released. The magnitude of positive and negative surprise will determine the sustainability of positive returns recorded in the preceding week. In the U.S, the CPI, PPI consumer sentiment data is due to be released next week. Though early reports suggest the inflationary pressure is receding in the U.S due to combination of strong US dollar and the soft commodity prices. A positive data on CPI ahead of the upcoming FOMC meeting on 21st Sept. may extend the recovery.
In Europe, the markets have positively responded to the ECB decision of hiking interest rates by 75bps with benchmark Stoxx Euro 600 Index and Euro making recovery. However, broader worries on energy supplies and inflation persist. CPI data release in the U.K and Germany will once again serve to remind the investors of the underlying inflation and the need for similar policy action in future.
In Asia, investors have had a sigh of relief on the drop in dollar index and better than expected CPI reading last week. A slew of economic data is due to be released in the region next week. Besides the release of economic data in the region and the U.S, the investor will also keep an eye on the upcoming visit of the Chinese president to Russia for an important meeting with the Russian President.