Tadawul Review:

Tadawul All Share Index (TASI) recorded a positive closing ‎for the fourth straight session on Sunday and a gain of 82 ‎points (+0.7%) at 11,487 levels. TASI underwent an initial ‎nervous trading period in the first hour of the session after a ‎modest positive opening. However, the index started its ‎gradual rise to compensate for its losses and gained 161 ‎points from its intraday low. In general, 18 out of 20 sectors ‎closed in the green zone, while the advance to decline ratio ‎came in at 4:1. Banks (+1.1%), Real Estates (+3.1%), and ‎Materials (+0.4%) sectors contributed the most to the index's ‎rise (+62 points). Stock-wise, Al-Rajhi Bank (+1.5%), Saudi ‎British Bank (+2.4%), and Bank AlBilad (+3%) contributed ‎most to the stability and rise of the index. The trading ‎activity witnessed a decline of 14% and 24%, respectively, to ‎reach 148mn shares and SAR4.9bn. TASI may seek to sustain ‎its momentum after four-straight sessions of positive closing ‎amid stability in oil prices and the upcoming result season for ‎Sep-end quarter. ‎

 

 

Market Wrap International:

Following one of the worst monthly performances in Sep-22, ‎the global equity markets may seek to find footing amid ‎increased nervousness. The near collapse of Pound and ‎subsequent recovery, a number of comments from Fed officials ‎and the release of economic data, particularly PCE in the U.S ‎towards the end of the week, dominated the markets ‎proceedings last week. The focus for now is likely to shift to ‎assessment of the impact of recent policy decisions on key ‎economic indicators (labor markets, consumer sentiment, ‎factory activity), corporate earnings (margin & volume ‎impact), and inflation numbers (CPI in the U.S in particular). ‎Possibility of another dead cat bounce kind of rally has grown ‎following volatility last week. In the U.S, key economic data is ‎centered around labor market and industrial activity which will ‎provide a sneak peek into the health of the economy in 3Q.‎

For Europe, currency weakness in Pound and Euro and the ‎persistent geopolitical risk have marred market proceedings. ‎The downgrade in outlook of the U.K and the latest hawkish ‎comments from the ECB officials will likely be key discussion ‎points for the investors next week.‎

In Asia, divergence in performance has emerged due to ‎overriding market specific factors. Currency weakness in Japan ‎and China and subsequent policy actions to stabilize the ‎markets made major headlines last week. Broadly speaking, ‎valuations remain enticing as many benchmarks trade at ‎multi-year lows and accordingly may provide further support ‎to the market.‎