Tadawul Review:

Tadawul All Share Index (TASI) dropped 105 points (-0.87%) ‎on Tuesday, to close at its lowest level since June 26 at ‎‎11,994.72.‎‏ ‏The market opened with an increase of 16 points ‎and made an intraday high of 53 before succumbing to selling ‎pressure. The decline in the index was broad-based, with 17 ‎out of 20 closing in the red, 163 shares down, and 47 shares ‎up (Advance to decline ratio of 1:3.5). The usual suspects for ‎the decline include the banking sectors (-‎‏0.6‏‎%), materials (-‎‎1.4%) and energy (-1.0%), and contributed a total of 60 ‎points in the loss. The major stocks in the decline of the ‎index were Al-Rajhi Bank (-1.6%), Aramco (-0.9%) and Al-‎Inma Bank (-2.7%). The session also witnessed an increase in ‎trading activity with the quantity and value of trading by 7% -‎‎17%) respectively, to reach 135 million shares and 5.3 billion ‎riyals. The index has breached an important psychological ‎level of 12,000. Stability in international markets and oil ‎prices remain important for TASI to break free from current ‎negative sentiment.‎

 

 

Market Wrap International:

The global equity indices failed to shake off the negative ‎momentum and underwent yet another session of losses. Asian ‎markets, however, ditched the broader trend and held the ‎ground. In the U.S, the benchmark indices were in for a rough ‎day following an extended weekend. The indices gave away ‎the initial positive move to drop by ‎‏0.4‏‎-‎‏0.7‏‎% at session close as ‎treasury yields rose across the curve. The strong US service ‎sector data once again reinforced the view that the Fed could ‎afford to sustain a hawkish stance to tame inflation without ‎making a major compromise on growth or employment.‎

In Europe, the benchmark indices too had a volatile session. ‎The indices traded in a positive territory for most of the ‎session on optimism over potential introduction of a fiscal ‎support package by the new premier in the U.K. The Euro ‎made modest recovery while country-level indices were ‎positive. Post the release of data in the U.S, the market ‎painted a completely different picture and erased initial gains ‎only to recover modestly to close with marginal gain of ‎‏0.2‏‎-‎‏0.9‏‎%.‎

In Asia, most indices were able to close with no major change ‎to previous close. SENSEX in India (-0.1%), KOSPI in Korea ‎‎(+0.3%), Hang Seng in Hong Kong (-0.1%) and Topix in Japan ‎‎(-0.1%) closed the session on Tuesday little changed. Shanghai ‎Composite in China, however, managed to gain for the second ‎straight session (+1.4%) with real estate developers, solar ‎energy and automobiles making the most impact. Market ‎participants are expecting the Chinese authorities to ‎announce more measures to support economic activity.‎