Tadawul Review:

Tadawul All Share Index (TASI) snapped its four-day losing ‎streak to record gains of 57 points (+0.5%) amid intensified ‎intraday volatility which saw the index struggling to hold on ‎to its initial gains. The index had opened the session ‎positively and reached its intraday high of +169 points. ‎However, selling pressure got the better of the bulls as gains ‎were reduced to only 87 points at the end of regular trading ‎hours. The index lost another 30 points in the closing auction. ‎In general, 17 of the 20 sectors closed in the green zone, ‎while 110 stocks rose and 89 fell. The index gains were led by ‎Banks (+0.8%), Insurance (+3.1%), and Energy (+0.6%) ‎sectors, which contributed to the index's rise by 44 points. ‎Stock-wise, Saudi National Bank (+2.3) led the charge, ‎followed by Aramco (+0.6%) and Al Rajhi Bank (+0.5%). ‎Dallah Health Services (+7.3%) and Bupa Arabia for ‎Cooperative Insurance (+7%) were the top gainers on ‎Tuesday. The trading activity witnessed an increase in the ‎volume and value of trading by +2% and +1% to reach 127mn ‎shares and SAR4.8bn. TASI is likely to see more volatility in ‎the upcoming sessions due to the Fed meeting. The stability ‎of oil prices and the movement in global markets remain ‎important for the market to build any positive momentum in ‎the upcoming trading sessions.‎

 

 

Market Wrap International:

The global equity markets moved in divergent directions on ‎Tuesday on the eve of the much-awaited Fed decision on ‎interest rate. Yields on sovereign bonds increased in almost ‎synchronous fashion on both sides of the Atlantic. The yield on ‎‎2-yr yield bond in the US hovered close to the 4% mark at ‎‏3.98‏‎%, rising to a fresh multi-year record.  The latest survey ‎shows 96out of 98 analysts expect a 75bps hike (per ‎Blomberg) and only two analysts expect a full one percentage ‎move. Clearly, the market is not prepared for a more ‎aggressive hike in interest rate. In the U.S, the benchmark ‎indices erased gains from previous session and dropped by ‎‏1‏‎-‎‎1.‎‏1‏‎% with investors deciding to stay cautious ahead of an ‎important event.‎

In Europe, there was no respite for investors as the Stoxx ‎Euro 600 Index dropped by ‎‏1.1‏‎% dragged by real estate and ‎communication. The index is just a stone throw away from its ‎Jul’22 low. The Swedish central bank hiked interest rate by ‎‎100bps, first such hike in almost three decades.‎

In Asia, relaxation on COVID-19 protocol in Hong Kong ‎provided much needed fuel for the markets to shake off ‎negativity from the past five sessions. Indices in Taiwan ‎‎(TAIEX: +0.9%) Hong Kong (HangSeng: +1.2%), and India ‎‎(SENSEX:+1%, pharma and other healthcare stocks in the ‎news) recorded handsome gains. Indices in other regional ‎markets also rose in the range of 0.2-0.5%.‎