Tadawul Review:

Tadawul All-Share Index (TASI) closed down for the second day in a row by -55 points (-0.5%) to close at 10,493 levels. TASI began the session quietly, rising slightly (+3 points) from the previous close, but soon succumbed to selling pressures, causing the index to fall for the remainder of the session hours due to the decline in Brent oil prices. In general, 12 out of 20 sectors closed in the red zone, while 51 stocks rose and 157 fell. Banks (-0.6%), Materials (-0.5%), and Energy (-0.8%) sectors were the major drags on the index and contributed a total of -37 points. Stocks-wise, Al Rajhi Bank (-0.9%), Aramco (-0.8%), and Riyad Bank (-1.4%) pulled the index down the most. The trading activity also witnessed a decline in the volume and value of trading by 25% and 21%, respectively, to reach 125mn shares and SAR3.2bn. Overall, TASI is likely to continue its see-saw moves in near-term.

 

 

Market Wrap International:

The macro data, particularly in the U.S and the geopolitical tension between U.S & China will likely take center stage in driving the global equity markets next week. The price correction over the past few sessions along with no big trigger over the next few sessions besides economic data, imply global markets may move more sideways before taking a definite direction. In the U.S, multiple important data points and/reports are due over the next week which will be shortened for trading days due to a national holiday on Monday. PCE deflator, consumption, unemployment and the minutes of the latest FOMC meeting are the four important updates for the investors.    

In Europe, besides data points in the U.S, investors will also look for data on PMI and CPI for the region in the next week. Relatively hawkish statements from the ECB officials will likely weigh on the investors’ sentiment.

In Asia, markets are likely to look for opportunities to reverse the course and make quick recovery. Major indices have pared a major part of YTD gains already on fears of further hikes in interest rates by global banks. Price correction may revive fresh interest in Asian markets, however geopolitical tension between the U.S & China may prove to be a drag. CPI in Japan and prime rates in China are two important updates in the region.