Tadawul Review:

Tadawul All Share Index’s (TASI) witnessed a volatile session on Tuesday and managed to close up by 65 points (+0.5%) at 12,301 levels. The market traded in a range of 155 points touching its low in the afternoon before posting a recovery. The gains in the market were the biggest since an increase of 2.4% on 15th May 2022. Banks (+0.7%), Energy (+1.6%) and Utilities (+4.6%) led the market recovery contributing 30, 16, and 12 points. Amongst the stocks, Bank Albilad (+5.0%), Alinma (+3.1%), and Ma’aden (+3.9%) pushed the index up the most while Saudi Industrial Export (+9.9%) and Salama Cooperative (+9.5) were the top gainers. Trading volumes and value declined by 11.7% and 8.1% to 158mn shares and SAR6.9bn. The index remains under pressure losing 127 points (-1.0%) WTD and may look to consolidate at current levels as Brent oil prices recover (+2.1% WoW).

 

Market Wrap International:

Investors assessed dismal PMI and housing data ahead of critical data later this week as US equities reversed greater losses but still closed down for the afternoon. After Snap Inc fell -42.98% post its profit warning after the close on Monday, the S&P500 closed -0.81% down, reversing earlier losses of as high as -2.48%, with technology weighing -1.57%. Further drops in communications (-3.70%) and consumer discretionary (-2.58%) weighed on the index, while breadth was uneven, with just 59 percent of companies falling. The Nasdaq Composite fell -2.35%, paring a plunge of as much as -3.84%, while the Dow Jones rose +0.15%.

European stocks were also down on Tuesday as PMI data revealed that company growth slowed in May, and that industrial development was hampered by a scarcity of raw materials. The flash manufacturing PMI for May fell to 54.4 from 55.5 before, slightly below expectations, with services falling from 57.7 to 56.3, falling short of expectations of 57.5. The Euro Stoxx 600 fell -1.14%, while the DAX down 1.80%, the CAC fell 1.66%, and the FTSE100 fell 0.39%, with the Pound falling -0.41%.

Asian markets booked losses on Tuesday as investors remained cautious on global growth concerns while assessing the impact of China’s recent fiscal stimulus. In China, SH Composite plunged by 2.4% despite the government’s relief package to the tune of USD21bn. COVID-19 lockdowns remain the major concern while investors look ahead to major tech giants’ earnings this week. In Hong Kong, Hang Seng was down by 1.8% despite auto shares closing up. The South Korean market, KOSPI, closed down by 1.6% but the poultry shares were up after Malaysia announced to halt the export of 3.6mn chickens per month from 1st June. The Nikkei 225 and SENSEX were also down by 0.9% and 0.4% respectively.