Tadawul Review:

Tadawul All Share Index (TASI) decreased by -0.6% (-75 points) on the first day of the week to close at 12,217. The decline in global markets and volatility in Brent oil prices dragged TASI down on Sunday. TASI opened at the level of 12,314, a slight increase (+23) from Thursday's level, but soon came under consistent selling pressure until the session ended. In general, 13 sectors out of 20 sectors closed lower. The advance to decline ratio came in at 1:1.4. The banking sector (-0.9%) and the energy sector (-1.0%) burdened the index and contributed to reducing the index by 54 points. At the level of stocks, Al-Rajhi Bank (-1.5%), Aramco (-1.1%), and Riyad Bank (-1.5%) contributed the most to the index decline. Red Sea Company and SABIC Agri-Nutrients Company were the biggest gainers in the session and closed at +9% and +8% respectively. Trading activity witnessed a decline in the quantity and value of trading for the third consecutive session by -20% and -13% DoD, reaching 148mn shares and SAR5.8bn.

 

 

 

Market Wrap International:

The global equity markets are set to open the week with the latest US economic data and its implications for the Fed’s policy decision on interest rate in light of a series of statements from the Fed’s officials last week. Accordingly, the upcoming CPI and PPI reading in the U.S due later this week will be closely watched. Overall, global equity indices are set to continue where they have left off. The excitement from results season is ebbing with major results already in the bag. Indices in the U.S delivered divergent returns though broader themes remained unchanged.

In Europe, the equity markets are faced with additional regional issues of rating downgrade for Italy and breakdown of agreement among the new coalition partners, besides concerns on the Fed policy decision. Policy action from BoE and accompanying commentary on economic outlook will also weigh on investors' sentiment.

In Asia, the latest trade data in China offers much-needed relief for investors in the region and comes at a time when the sentiment is already running low. The positive economic data in China may work to dilute the impact of volatility witnessed in the U.S and European markets after the market close in Asia and the latest decision by the Chinese authorities to suspend military dialogue with the U.S. That said, currency and commodity markets will be other important areas of focus for regional investors.