Tadawul Review:

Tadawul All Share Index (TASI) underwent another session of losses extending the losing streak to four sessions, declining by 113 points (-0.9%) to close at 12,492 levels. TASI sharply declined as the market opened and then experienced a volatile phase within the first hours of trading before closing in the red. All but one sector ended the session in the positive, the majority of them falling by 1-2%. ARAMCO and PETRO RABIGH decreased by -1.6% and -4.9%, respectively, contributing to the overall decline of -1.7% in the Energy sector. The Utilities sector increased by +1.9% due to SAUDI ELECTRICITY which closed in gains of +4.1%. Trading volumes decreased by -7.3% falling below the 200mn mark, while the values traded rose by +11.8%. The market will likely remain volatile in the coming sessions as the investors are looking to book profits, given the geopolitical uncertainty.

 

Market Wrap International:

On Monday, U.S. shares sank as Treasury yields rose ahead of the Federal Reserve's policy meeting on Wednesday night, while commodities plummeted due to Chinese restrictions imposed in response to mounting Covid cases. Decline in technology -1.9% and consumer discretionary -1.7% names dragged the S&P500 but financials +1.2% benefited on increasing treasury yields. Overall, the index fell -0.7%, reversing opening gains of 1%. The Dow Jones remained flat, while the Nasdaq Composite and Russell 2000 both fell -2.0% and 1.9%, respectively. Initial gains were fueled by anticipation of a new round of talks between Russia and Ukraine before weakening late in the day. Investors are waiting for revised economic estimates from the Federal Reserve overnight on Wednesday.

On Monday, European equities climbed in anticipation of talks between Russia and Ukraine that could bring the multi-week conflict to a close. The Euro Stoxx 600 gained 1.7%, while the DAX gained 2.2%, the CAC gained 1.8%, and the FTSE100 gained 0.5%. In economic news, the unemployment rate in the United Kingdom is predicted to drop to 4.0 percent from 4.1 percent in the previous three months, with the number of people employed increasing by 30,000. With the release of the ZEW economic sentiment surveys for March, we'll see economic sentiment for both the Eurozone and Germany, which is predicted to show drops.

 

In Asia, markets were mixed in the week’s first session while the geopolitical issues softened, leading commodities’ prices to fall. In China, SH Composite plunged by 2.6% recording a daily decline not seen since 24th July 2020 amid renewed COVID-19 lockdowns. Regulatory concerns and US delisting risk sent Hong Kong Tech stocks to a new low, with the Hang Seng tech index recording its biggest intraday decline of 11% dragging the Hang Seng benchmark by 5%. KOSPI also was down by -0.6%. However, Nikkei 225 managed to rise by +0.6% on Monday while Sensex continued its rising streak of five sessions, gaining +1.7%.