Tadawul Review:

Tadawul All Share Index (TASI) marginally declined by 13 points (-0.1%) to close the first session of the week at 12,463 levels. Though the market opened up with sharp gain, rising 140 points from previous close but it failed to hold its ground and declined afterwards to close slightly in the red zone at its intra-day low. All sectors except for banks and REITS (19 out of 21), closed in red. The announcement from AL Rajhi Bank of 60% increase in capital inspired a rally in banks, particularly in AlRajhi (+6%) and Alinma (+5.8%). Materials names slumped by (-2.5%) following a couple of unfavorable results, and drop in agricultural commodity prices. Trading volumes improved though values traded declined by +4% and -8% respectively to reach 228mn shares and 9.6bn Riyals. High volatility in markets is set present as the investors assess recent stock performance and valuation with future earnings outlook and heightened global geopolitical risk.

 

Market Wrap International:

The US stock market is set to experience more twists and turns in the Russia-Ukraine crisis next week, adding to investor concerns over the pace of interest rate hikes and their fallout on broader economic prospects. Alibaba, Home Depot, Lowe's, Macy's, eBay, Dell Technologies, and Block are all expected to report earnings this week. The second estimate of Q4 GDP is projected to be revised upward, while there will also be updates on new home sales and durable goods orders. The oil market will be in the spotlight next week as the Russia-Ukraine situation unfolds and the likelihood of increased Iranian production is evaluated.

With the worst of the Covid-19 omicron wave having passed across parts of Europe, survey data in the coming week could provide some early indications of how economies are rebounding as restrictions are eased. The impact of escalating energy bills and an only slow easing of supply bottlenecks will also be shown by flash PMI readings and Germany's Ifo poll. Consumer prices in the eurozone are at their highest level since the single currency's foundation. The flash PMI figures in the United Kingdom will provide another indicator to Bank of England watchers as the central bank considers another rate hike in March. In this regard, a series of statements from members of the Monetary Policy Committee are expected to pique investor interest.