Tadawul Review:

Tadawul All Share Index (TASI) slipped for the second consecutive day by 2.2% (-269 points) to close at 12,053 levels, the lowest closing since 13th Feb. The market opened with a negative gap of 36 points and maintained its negative momentum throughout the day and even dipped below 12,000 levels before recovering. The index decline was broad-based (19 out of 20 sectors closed down) and was led by Banks (-2.7%), Materials (-2.7%), and Telecom (-3.8%) which cumulatively contributed a negative 192 points. Saudi National Bank (-3.7%), Al Rajhi Bank (-2.0%), and Riyad Bank (-4.3%) were the major drag on the index. Overall, trading activity rose with volume and value increasing by 21% and 18% to 210mn shares and SAR8.8bn. Global inflation concerns and the resumption of lockdown in China remain the major roadblocks to market recovery. 

 

 

Market Wrap International:

Global shares fell on Monday, with Treasury rates rising on fears that last week's higher-than-expected inflation report may compel the Fed to tighten rapidly, plunging the US into recession. A savage day of selling sent the S&P500 down more than 20% from its record highs, defining a bear market. On Monday, the benchmark index fell -3.88%, with all sectors down, headed by oil (-5.13%), real estate (-4.78%), and consumer discretionary (-4.66%), with 99% of companies falling. The Dow Jones fell -2.79% while the Nasdaq Composite fell a massive -4.68%.

European equities were also considerably down, driven down by the same global mood, with the Euro Stoxx 600 down -2.41%, the DAX down -2.43%, the CAC down -2.67%, and the FTSE100 down -1.53%, with benchmarks throughout the region plunging. Concerns were also raised by stories of Beijing racing to contain a COVID-19 spread, with millions facing forced testing and some targeted lockdowns following the recent relaxation of restrictions.

Asian markets bled the most in three months on Monday as above expectation US inflation and renewed fears of COVID-related China lockdowns dampened the sentiment. The MSCI Asia Pacific Index dropped by 2.8% with tech and consumer discretionary leading the decline. Hong Kong, Japan, and South Korea markets were among the biggest decliners recording losses of 3.4%, 3.0%, and 3.5% respectively. The SH Composite in China recorded a loss of 0.9% and SENSEX in India was down by 2.7%.