Tadawul Review:

Tadawul All Share Index’s (TASI) failed to sustain its momentum from the previous session and remained subdued on the last day of the week to close down 59 points (-0.5%) at 12,530 levels. The index, after opening with a positive gap of 67 points, went through a gradual decline throughout the day, recovering just at the end to close slightly higher than its day low level. The majority of the sectors closed lower (11 out of 20 sectors), however, the market recorded an advance to decline ratio of 1.45x as most shares closed in the green. Banks (-0.7%), Energy (-0.7%), and Telecom (-0.6%) were the major drag on the index. Amongst the stocks, SNB (-1.6%), ARAMCO (-0.7%) and Albilad (-2.1%) contributed the most to the index decline while Tasnee (+2.6%), SIIG (+1.6%) and Saudi Kayan (+2.5%) provided support. Abdulmohsen Alhokair was the top gainer for the day closing at upper lock (+10.0%). Trading volumes and value dipped by 9% and 18% to 168mn shares and SAR7.1bn. TASI witnessed a volatile week with the market managing to add 102 points (+0.8%), however taking a cue from the international markets, investors might continue to sell off equities in a bid to move towards safer havens. 

 

 Market Wrap International:

The S&P 500 Index had its best week since November 2020, jumping 6.6% and snapping a seven-week losing run as economic data reaffirmed robust consumer demand and low inflation. On lighter-than-usual turnover, the broad stocks benchmark rose 2.5% on Friday ahead of the holiday weekend. Information technology and consumer discretionary companies led the 11 major S&P 500 sector groups higher. The index is up more than 9% from its intraday lows on May 20, when it briefly entered bear market territory, and is on course to end the month in the black.

Investors returned to risk assets, drawn by lower valuations, and European equities gained, marking their largest weekly gain since mid-March. By the end of trading in London, the Stoxx Europe 600 Index had gained 1.4%, reaching its highest level since May 3. After the UK government unveiled windfall tax proposals on oil and gas corporations on Thursday, consumer and technology stocks soared, while utilities and energy stocks underperformed. Adding to the upbeat mood, some of China's major technology businesses surpassed sales forecasts, bolstering the country's tech stocks. This week, the Stoxx 600 increased by 3%, the most since mid-March.

Upbeat profits from Alibaba and Baidu relieved some concerns about the economic impact of China's Covid lockdowns, boosting risk-on mood in Asia. Consumer discretionary and technology stocks drove the MSCI Asia Pacific Index up by 1.6%, putting it on track for its first gain in four sessions. The majority of the markets in the area were higher, with Hong Kong leading the way. The Hang Seng Tech Index, which covers Hong Kong-listed tech heavyweights, increased by 3.8%.