Tadawul Review:

Tadawul All-Share Index (TASI) made a sharp recovery from ‎its intraday low 197points to close unchanged at session ‎close. TASI had opened the session negatively, down 30 ‎points and continued its decline until the middle of the ‎trading session. The low stock prices encouraged dip buying. ‎Index heavy names (mining stocks in particular) made ‎significant intraday moves. In general, 7 out of 20 sectors ‎closed in the green zone, while 63 stocks rose and 136 fell. ‎Banks (+0.9%), Real Estate (+0.9%), and Utilities (+1%) ‎sectors contributed to the stability of the index, while ‎Materials (-0.8%), Energy (-1.2%), and Telecom (-1.3%) were ‎a drag on the index. Among stocks, Aramco (-1.3%), Maaden ‎‎(-1.9%), and STC (-0.9%) pulled the index down the most. ‎Trading activity also continued to improve for the third day, ‎in terms of trading volume and value, by +9% and +19%, ‎respectively, to reach 199mn shares and SAR7bn. TASI’s ‎performance is likely to be affected by volatility in ‎international markets and the latest decision by FOMC (see ‎details below).‎‎

 

 

 

Market Wrap International:

The global equity indices danced to the tune of the FOMC ‎policy decision and post-meeting press conference by Fed ‎Chair. The initial reaction to the statement was taken ‎positively by the market as equity indices surged, yields ‎dropped and currency retreated. However, the full import of ‎FOMC’s policy statement became clear in the press ‎conference where two major surprises awaited the markets, ‎‎(i) possibility of slower hike in from the next policy meeting or ‎the next as opposed to consensus expectation of slower hike ‎from Dec, (ii) Fed eyeing higher peak of rate relative to ‎previous forecasts. Equity indices gave up intraday gains, yields ‎on treasury surged along withth dollar index.At session close, ‎the S&P 500, Nasdaq Composite were down 2.5% and 3.4%. ‎Tech and other growth names borne the brunt of most of the ‎selling pressure.‎

In Europe, the benchmark Stoxx Euro 600 Index dropped by ‎‎0.3%, giving up intraday gains of  +0.1%. Investors were ‎cautious ahead of the policy rate announcement by the Fed, ‎due after the session close and BOE (due tomorrow). The ‎newsflow over resumption of wheat and other commodity ‎exports from Ukraine is positive for the region.‎

 

In Asia, the optimism over possible easing of COVID-19 ‎restrictions in China remained a driving force for the second ‎straight session with indices in Hong Kong (HangSeng: +2.4%) ‎and China (Shanghai Composite: +1.2) posting strong ‎performances again. Except for Sensex in India (-0.4%), other ‎major markets closed modestly up (0.1-0.5%).‎