Tadawul Review:

After a dismal last couple of sessions, Tadawul All Share Index (TASI) managed to bounce back adding 249 points (+2.0%) due to massive value-buying. The index opened in the green, +0.4% above the previous close, and then rose for the remaining session before closing at 12,656 levels. All but three sectors ended the session on a positive note. The Energy sector rose by a whopping +5.2% mainly due to ARAMCO which increased by +5.8% to close at SAR 41/sh. ETIHAD ETISALAT increased by a whopping +9.9% which contributed to the overall gain of +3.8% in the Telecommunications sector. The Materials sector closed in the green courtesy of MAADEN which climbed +9.9% to end the session at SAR 122/sh. Trading volumes and values increased by +69% and +49%, respectively. The market has managed to pare its recent losses and may witness continued upward momentum in the coming sessions though investors remain cautious due to the persisting geopolitical turmoil.

Market Wrap International:

U.S. equities surged and the yield curve flattened after the Federal Reserve hiked interest rates by 0.25 percent and revised their "dot plot" projections in accordance with market expectations. For the first time since 2018, policymakers voted 8 to 1 to raise rates by 0.25 percent, with one opposing vote coming from St. Louis President James Bullard, who favored a 0.50 percent rate rise. The attention was on the release of the "dot plot" and economic predictions, which showed officials' median rate projection for 2022 at 1.9 percent, which was in line with traders' expectations and higher than the Fed had previously anticipated. Equities briefly reduced their gains before rebounding again as Fed Chair Jerome Powell in his news conference played down the prospect of a recession. The S&P500 was up 2.2% along with NASDAQ +3.8% and Dow +1.5%.

European indices surged on Wednesday’s session, taking their cue from Global markets’ rally on peace talk between Russia and Ukraine and China’s promise to inject more stimulus. The European Pan Stoxx 600 rose by +3.8% after slightly dropping in yesterday’s session. In the UK, FTSE 100 advanced by +1.6%, boosted by financials on expectations that Bank of England will raise interest rates. In Germany, DAX also picked up the pace and added +3.8%.

In Asia, finally, all major indices were able to close the session in the green zone after hitting record lows in previous sessions. In China, the country’s top policymaker assured support for the financial markets & real estate sector while committing to speed up the process of regulating big Tech platforms. Resultantly, SHCOMP managed to surge in the afternoon session, ending the day with a +3.5% rise after dipping by nearly -7.5% in the past two sessions. Similarly, in Hong Kong, Hang Seng skyrocketed in today’s session, rising by +9.1%. Nikkei 225, KOSPI and SENSEX advanced by +1.6%, +1.4%, and +1.9% respectively.