Tadawul Review:

Tadawul All Share Index (TASI) added 90 points (+0.8%) on Tuesday to close at 11,964 levels. Trading throughout the day took place above the previous day’s closing with the index constantly swinging between highs and lows. The market touched a high of 103 points before losing steam to close up by only27 points, however, managed to add a further 63 points during the closing auction. Overall, 14 of 20 sectors closed higher while 102 shares rose and 93 fell. The market was driven by the Banks (+0.9%), Materials (+0.7%), and Utilities (+3.6%) sectors. The Utilities sector was also the top gainer for the day, thanks to ACWA power closing up by +5.4%. The trading activity remained at the same levels with volume traded rising by +0.3% to 164mn shares while value traded inched down by 1.2% to SAR5.1bn. The market may look to consolidate at current levels given the recovery in Brent oil prices from a recent low of USD103.2/bbl to USD106.6/bbl (+3.3%).  

 

Market Wrap International:

The global equity indices moved sideways on Tuesday with investors taking a cautious stance. The ongoing earnings season has made a limited impact on the market with investors digesting the latest round of hikes in the policy rate and mixed economic data releases. In the U.S, the benchmark indices shed 0.7-1.9% on the latest economic data showing an above-expected drop in consumer confidence for the month of July. Tech stocks were under pressure on the expectation of a weak set of results by major tech companies due this week.

In Europe, the sentiment remained tentative in the backdrop of talks of a further rate hike by the ECB and a gas supply cut by Russia for the region. The benchmark Stoxx Euro 600 Index closed flat while Euro weakened by 0.7% on the energy supply outlook into the upcoming winter season. Energy names were bid up on oil prices while the retail sector came for selling on weak sentiments.

In Asia, markets moved in divergent directions. Indices in China and Hong Kong bucked the broader regional trend and moved up by 0.8% & 1.7% respectively. The latest news about Alibaba seeking a primary listing in Hong Kong lifted the tech stocks, particularly US-listed names. Property stocks in China sustained positive momentum for the second straight session following reports that the government is considering forming a fund to support struggling developers. Indices in Korea (KOSPI: 0.4:) gained while in India (SENSEX: -0.9%), Japan (Nikkei: -0.2%), and Taiwan (TAIEX: -0.9%) recorded nominal losses.