Tadawul Review:

Tadawul All-Share Index (TASI) closed Monday's session down for ‎the third day in a row, shedding -305 points (-2.8%). The broke ‎the 10,500 level and settled at 10,419, its lowest closing level ‎since May 18, 2021 (10,424). TASI opened the session at the ‎same level as the previous one, but was soon exposed to strong ‎selling pressure, causing it to decline dramatically for the rest of ‎the session, closing at its intraday low. In general, all sectors ‎closed in the red zone, while 20 stocks rose and 187 declined. ‎Banks (-3.8%), Materials (-1.6%), and Energy (-2.2%) sectors ‎were the major drags on the index and contributed a total of ‎‎193 points. Stocks-wise, Al Rajhi Bank (-3.8%), Aramco (-2.1%), ‎and Saudi National Bank (-3%) pulled the index down the most. ‎The trading activity witnessed an improvement in volume and ‎value by 36% and 43%, respectively, to reach 117mn shares and ‎SAR4.1bn. TASI has dropped ~24% from its peak. The technical ‎indicators remained oversold though the momentum is ‎negative.The index can take support at current levels amid ‎intraday volatility. ‎

 

 

Market Wrap International:

The global equity indices moved in divergent directions on ‎Monday with investors assessing the prospects of further rate ‎hikes, risk of further tightening if energy supplies in Europe and ‎incremental progress on the economic reopening in China. In the ‎U.S, the benchmark S&P 500 Index and Nasdaq Composite ‎retreated by. -1.8% and -1.9% on Monday. A strong rally in the key ‎indices from recent lows have made investors more cautious ahead ‎of another FOMC meeting due next week and important economic ‎data releases. Consumer Discretionary and Energy were the worst performing sectors for ‎the session. ‎

In Europe, the drop in temperature in the region has reignited ‎concerns on energy supplies as the region enters into the peak ‎winter season in coming days. Energy prices remained steady ‎despite a latest decision by the OPEC+ to leave the output ‎unchanged. The Stoxx Euro 600 Index dropped by -0.4% at session’s ‎close on Monday. The county-level indices exhibited mixed trends ‎with FTSE-100 recording gains of 0.1% while DAX and CAC40 falling ‎by -0.6% and -0.7% respectively. ‎

In Asia, easing of COVID-19 restrictions and economic reopening ‎remained a dominant theme in the region. The equity indices in ‎Hong Kong (HangSeng: 4.5%) and China (Shanghai Composite: ‎‎+1.8%) posted yet another performance as investors celebrated ‎easing of requirements of COVID testing in major cities. Indices in ‎Japan (TOPIX: -0.3%) and Korea (KOSPI: -0.6%) closed in red.  ‎‎