Tadawul Review:

Tadawul All Share Index  (TASI) extended its gains for the fourth consecutive day adding 99 points (+0.8%) to close the week at the highest closing level of "TASI" in the past two months i.e. 12,531. The market opened on a positive note due to the rise in Brent oil prices and continued on its gradual upward trajectory reaching a peak of 12,538 before partially paring its gains. In general, 14 sectors out of 20 sectors closed in the green zone, while 132 stocks rose and 69 fell. The Materials sector (+2.0%), the Energy sector (+2.3%), and Insurance (+1.8%) were the biggest contributors to the increase in the index adding 63 points. Amongst the stocks, the shares of the Saudi Arabian Mining Company (+10%), Aramco (+2.4%), and Al-Rajhi Bank (0.6%) influenced the index the most. Trading activity witnessed an increase in the volume and value of trading by +20% and 19% DoD, to reach 214mn shares and SAR8bn.

 

Market Wrap International:

The reverberation from below-expected CPI and PPI readings in the U.S continued making its impact on the global equity indices for the third straight session on Friday with most indices closing the week on a strong note. In the U.S, the indices moved higher through the session on Friday all major sectors in the S&P 500 recording daily gains. The benchmark index closed with a 1.7% gain for the day and finished the week with a cumulative 3.3% jump. Other benchmark indices also painted a similar picture.

In Europe, the Stoxx Euro 600 Index rose 0.2% on Friday, sustaining the rally into the third session. Leisure, travel, and pharma were the major drivers for the region.  The GDP growth data in the U.K showing a quarterly drop, coupled with the latest CPI reading in the U.S, gave rise to investors' expectation of the BoE revising its current hawkish mode.

In Asia, equity indices moved higher on the prospects of easing inflationary concerns in the U.S though the gains were modest (0.2-0.6%). Indices in Japan were an exception which posted 2-2.6% gains on Friday as the market digested the lower CPI print in the U.S released on Wednesday (Thursday was a public holiday in Japan). The announcement by the U.S listed Chinese companies drew a mixed response in China.