Tadawul Review:

Tadawul All Share Index (TASI) remained flattish on Thursday, decreasing by just 25 points (-0.2%) to close at the 12,622 level. The index opened the session at the level of 12,660, slightly higher than Wednesday's closing level, and trading remained within the range of 93 points. The session was a volatile one, with the closing auction shaving off 43 points, resulting in the index adding 91 points in its third week in August. Overall, 11 out of 20 sectors closed down including index heavyweights namely the Materials (-0.5%) and Energy (-0.7%) sectors. In addition, the Media (-7.3%) also contributed notably to the index decline.  Amongst the stocks, the shares of Saudi National Bank (-1.1%), Aramco (-0.8%), and Saudi British Bank (-2.5%) influenced the index the most. The top gainers for this session were Elm and Fawaz Abdulaziz Alhokair, which closed higher by 6.1% and 5.5%. The trading activity also witnessed an improvement in the amount and value of trading by +2% and +4% to reach 186mn shares and SAR7.4bn.

 

 

Market Wrap International:

The global equity indices faced renewed downside volatility with concerns on monetary policy in the U.S and Europe amid expectations of sticky inflation and growing risk to growth outlook in China weighing on investors’ sentiments. In the U.S, the S&P 500 Index slipped and dropped over 1.2% on Friday with all but two sectors managing to give positive closings. The latest statement from the Fed’s officials has added to the uncertainty on the next move of the Fed's monetary policy committee. The US Dollar Index jumped close to its recent high while the treasury yield curve shifted upward.

In Europe, the Stoxx Euro 600 Index dropped by 0.8% on Friday, paring the weekly gains. The energy supply uncertainty in the region, coupled with record-high inflation readings in many countries and the latest economic data in the U.K (inflation, consumer sentiment), has started to play up. Both Euro and Pound lost further value against the dollar on Friday.

 

In Asia, growth concerns in China remained a major driver for the equity benchmarks in the region. Investors are keeping a close eye on the timing and shape of promised support measures for economic revival. Equity indices in Japan and Taiwan were little changed on Friday. The drag from Foreign selling in India (SENSEX: -1.1%) and profit taking in Korea (KOSPI: -0.6%) and growth concerns in China (Shanghai Composite: -0.6%) dragged the benchmark indices down.