Tadawul Review:
Tadawul All Share Index (TASI) fell by -20 points (-0.2%) on Wednesday’s session to close at 11,393 levels. TASI opened the session on a negative note by -22 points from the previous close, However, after the initial dip, TASI made a recovery to rise to intraday high of 75points from the previous close only to decline again towards the session close. In general, 12 out of 20 sectors closed in the red zone, while 124 of 223 shares fell and 82 rose. Banks (-0.6%), Health care equipment and services (-1.3%), and Materials (-0.2%) sectors contributed the most to the index's -29 point fall. Stockwise, Saudi National Bank (-1.0%), Al Rajhi Bank (-0.4%), and Saudi Awwal Bank (-2.0%) were the major contributors. The trading volume activity declined by -2% DoD to reach 194mn shares, while the trading value increased by +3% DoD to reach SAR5.3bn.
The stocks in U.S wavered between smalls gains and losses Wednesday, as investors digested deepening concerns about the Chinese economy and awaited further clues on the monetary-policy outlook at home. The yields on 2-10-year tenures rose by 3-6 bps. The S&P 500 Index closed the session at -0.8% with 10 of 11 listed sectors dropped. while Nasdaq closed at -1.1%.
In Europe, equities experienced a period of fluctuation, between modest gains and losses as growing pessimism around China’s economic outlook prompted caution among investors. Higher-than-expected UK inflation data also weighed on sentiment.. The Stoxx Europe 600 Index was down by 0.1% and in UK FTSE 100 index was down too (-0.4%). The country-level indices were in a range of -0.1%|0.1%.
In Asia, pressure is building across Chinese financial markets, with a credit crunch for developers worsening while a crisis unfolds in the nation’s shadow banking system. The CSI 300 Index is on track to erase all of its gains since a key political meeting in July raised expectations for policy support. SHCOMP and Hang Seng went down by 0.8% and 1.4% respectively. Equity indices in Japan also registered another session of losses (TOPIX:-1.3%, NIKKEI 225:-1.5%) after the bond market signals concern that volatility will rise around the time of the Bank of Japan’s September meeting. The country-level indices moved in the range of -1.8%|0.2%.