Tadawul Review:

Tadawul All Share Index (TASI) ended today’s session almost unchanged despite rising oil prices nearing their 2008 high. TASI closed at 12,808 levels adding only 4 points.  The market initially declined by -0.8% to 12,698 levels, due to massive profit-booking before recovering to close in the green Most sectors were down, Banks slipped for the second session, falling by -0.8% DoD, Health Care also fell by -0.7%. However, Energy advanced by +0.4% as Aramco ended +0.5% higher, Materials soared again by +1.7% as SAFCO reached its all times closing high of SAR 199.4/sh (+6.5%). Trading volumes and values advanced by +3% and +19% respectively. After hitting a high of USD137.8/bbl, Brent has retreated to USD121 levels, which may induce further profit-taking in the short run.

 

Market Wrap International:

As rising commodity prices stoked concerns about inflation with global shares falling while bond yields soared. The S&P500 was –3.0% lower in broad-based selling with declines in technology -3.7%, consumer discretionary -4.8%, and financials -3.6% weighing on the index, while utilities +1.3% and energy +1.6% outperformed. The Nasdaq Composite fell -3.6%, along with Dow Jones -2.24%. Rising energy and commodity prices, as well as anxiety over the impact of the Ukraine conflict on economic growth, are impacting on sentiment. The Biden Administration is examining whether to impose an embargo on Russian oil and energy products, but has yet to make a decision on whether to do so, as well as the timing and breadth of any such boycott.

European markets were a sea of red as oil and major commodities marched upwards stoking fears of inflation. FTSE-100 hit a more than 7-month low on Monday, closing down by -0.4%, on inflationary concerns as the West mulled sanctions over Russian oil imports. Similarly, Euro Stoxx and DAX declined by -1.4% & -2.0% respectively.

 

Asian markets have witnessed a sharp decline in the week’s opening session, taking a cue from European markets dip on Friday as the tension between Russia and Ukraine mounted, sending commodities prices sky-high. In China, stocks closed at a 20-month low with SHCOMP slipping by -2.2%. The Hang Seng, fueled by Beijing’s corporate crackdowns and geopolitical issues, dropped by -3.9% to reach its five-year low. In Japan, Nikkei 225 plunged the most in five-week (-2.9%) on surging oil & commodity prices. KOSPI fell 2.3% while Sensex recorded the fourth consecutive day of losses, closing down 2.7%.