Tadawul Review:

Tadawul All Share Index (TASI) underwent yet another ‎volatile session and fell 77 points (-0.7%) on Sunday to close ‎at 11,632 levels. TASI opened the session on a positive note and continued to rise in the first hour of trading, to reach its ‎intraday high of +64 points. Then, TASI started declining for ‎the rest of the trading hours, retreating 142 points from its ‎intraday high. In general, 9 out of 20 sectors closed in the ‎green zone, while 97 stocks rose and 103 stocks fell. The ‎decline was led by the Banks (-1.5%), followed by the Real ‎Estate (-2.5%), and Insurance (-1.2%) sectors, which ‎contributed to the decline of the index by a total of 78 ‎points. Amongst stocks, Saudi National Bank (-3.3%), followed ‎by Al Rajhi Bank (-1.3%), and Saudi British Bank (-2.8%), ‎pulled the index down the most. Trading activity witnessed a ‎significant decline in the volume and value of trade -44 % and ‎‎-46%, respectively, to reach 104mn shares and SAR3.8bn. The ‎disappointing results from Materials (petrochem) and no ‎major positive surprise in banks have dragged TASI in recent ‎sessions. TASI may remain directionless in the near-term with ‎a major Fed decision due later this week.‎ ‎

 

 

 

Market Wrap International:

The next ahead for the global equity indices will be dominated ‎by economic data on inflation, policy rate decisions by both ‎Fed and BOE, start of quantitative tightening in the U.K and ‎progress on economic plans by the new government in the ‎U.K. In the U.S, the Fed is all set to lift rate by another 75bps ‎in its two-day meeting starting Tuesday. Fed dot plot, or ‎guidance for markets for future rate hike, has assumed greater ‎importance in the backdrop of market’s widely held view Fed ‎may slow down the pace of future hikes. A dovish guideline ‎relative to previous issuance may trigger further recovery in ‎the markets. The earnings print in the U.S is skewed towards ‎energy and healthcare while labor market and ISM data are ‎the two of the more important points to look forward to next ‎week.‎

 

In the Euro region, BOE is expected to accelerate the pace of ‎rate hike to 75bps in response to inflation pressure. Investors ‎are closely tracking newsflow (windfall levy on energy or ‎financial companies) on the new economic plans to plug the ‎revenue gap in the U.K and any change in plans by BoE for the ‎start of planned quantitative tightening next week. Euro has ‎slipped back under parity against USD. The inflation data in ‎the region is due next week along with growth estimates for ‎‎3Q.‎

 

In Asia, the sell-off has continued unabated with dual concerns ‎on growth and currency. In absence of any major economic ‎data or central banks’ policy actions in the region, the focus is ‎likely to be on earnings and China COVID policy besides policy ‎decisions in the U.S and U.K. Valuation in the region remains ‎attractive and earnings season has the potential to pare some ‎of the losses suffered by the markets in recent sessions.   ‎