Tadawul Review:

After a dismal last session, Tadawul All Share Index (TASI) managed to bounce back adding 120 points (+1%) to close at 12,418 levels. Although the market opened on a positive gap gaining nearly 273 points, it could not maintain the momentum as investors booked profits but managed to close green. All sectors barring Energy closed positive with Banks rising +0.1%, Materials surging +2.5% as MAADEN’s (+4.7%) 2021 result beat consensus forecast. On the other hand, Energy fell -0.5% as Aramco closed down -1% on retreating oil prices. Trading volumes and values fell sharply by -39% and -35% respectively but were still at a favorable level, reaching 236mn shares and SAR 10bn. Despite geopolitical tensions, the market has managed to remain stable (+1.2% MTD) owing to stellar 2021 result announcements and record-level commodity prices.  

Market Wrap International:

nvestors will have a busy week as they monitor the impact of the Ukraine conflict on global markets, oil prices, and commodities. HP, Lucid Group, Target, and Costco are among the companies reporting earnings despite a tough geopolitical background. There will also be a slew of FOMC speakers, including Fed Chairman Jerome Powell, who will testify on Capitol Hill. The central bank faces the difficult task of combating inflation without jeopardizing economic growth. The OPEC decision on production boosts on Wednesday will be one of the greatest wildcards of the week. Investors will be eyeing Friday's non-farm payrolls data for February — the last such employment report the Fed will get before its monetary policy meeting in March – in addition to the rapidly developing situation in the Ukraine.

 

European investors will brace for further dramatic asset price swings in the week ahead after Western nations unveiled a slew of penalties aimed at punishing Russia for its invasion of Ukraine, including the exclusion of several institutions from the SWIFT international payments system. Financials are expected to be under increased scrutiny. The United States, the United Kingdom, Europe, and Canada have all proposed further measures, including restrictions on the Russian central bank's international reserves. The changes will take effect in the coming days. Traders will continue to reassess its implications for the global economy, including potentially higher commodity prices and inflation. Volatility is expected to remain elevated as investor adjust their risk tolerance while most nervous investors will likely rush to safe havens such as gold and Treasuries.