Tadawul Review:

Tadawul All Share Index (TASI) declined by 43 points (-0.4%) ‎on Wednesday to close at 11,461 ahead the official Saudi ‎National Day holiday. Volatility in global markets and ‎commodity prices continued dragging TASI down. On ‎Wednesday, the index remained in negative territory and ‎touched its intraday low of 96 points before the late-hour ‎recovery saw the index close the session. In general, 15 out of ‎‎20 sectors declined, while 54 shares rose, and 144 shares ‎declined. The usual suspects, specifically Banks (-0.3%), ‎Energy (-0.7%), and Utilities (-1.7%), were the major drags on ‎the index. The trading activity also witnessed a decline in the ‎volume and value of trading by -7% and -12%, respectively. ‎TASI is expected to absorb the shock of the Fed's statements ‎and the impact of the major global markets in the upcoming ‎sessions and to continue in same direction. ‎

 

 

Market Wrap International:

The global equity indices reeled from the aftermath of revised ‎outlook of the Fed policy rate, the fiscal largesse in the U.K ‎and latest economic data in Europe. The investors were ‎caught off guard on the latest developments. The element of ‎surprise sent the asset prices across the spectrum -from bonds ‎to equities, commodities to so-called digital assets, in a tailspin ‎as risk-off mode took hold. The U.S dollar set a new record ‎while gold prices dropped further. Major equity indices have ‎entered a technical bear market, defined as more than 20% ‎drop from the peak levels. In the U.S, the benchmark indices ‎dropped by 1.6%-1.8% on Friday, with the S&P 500 Index now ‎just a stone throw away from its June-22 low. Energy (-7%) ‎and Consumer Discretionary (2.3%) were the worst hit. ‎Nasdaq Composite now trades at lows seen at the peak of ‎COVID-19 in Mar-20. ‎

In Europe, the benchmark Stoxx Euro 600 Index fell 2.3% and ‎entered bear territory for the first time since the pandemic. ‎Energy and commodities were the major drags. A GBP72bn (or ‎USD82bn) fiscal support package announced by the new PM ‎in the U.K renewed pressure on sterling (1985 low against ‎USD, Euro 2002 low) and bonds (yields spiked sharply). The ‎major country level indices also fell in the range of 2-2.3%. ‎

In Asia, the drop in key indices of 0.7-1.8% was not as severe ‎as seen in Europe and the U.S markets. Indices in China ‎‎(Shanghai Composite: -17%), Hong Kong (HangSeng: -31%), ‎Korea (KOSPI: -31%), Taiwan (TAIEX: -24%) are already ‎trading at significantly below their respective peaks with ‎valuations faring at multi-year lows. Indices in Japan (Nikkei: -‎‎11%) and India (SENSEX:-6%) are relatively unhurt from the ‎dislocation in global financial conditions so far. ‎