Tadawul Review:

Tadawul All Share Index (TASI) continued dancing to the ‎tone of downside volatility in international markets and oil ‎price. The index declined for the third consecutive day on ‎Monday, losing 252 points (-‎‎2.26%) to close at 10,909 levels, ‎marking the lowest closing since December 2, 2021. ‎TASI ‎made an attempt to change its course in the initial trading ‎session but soon succumbed to selling pressure. The market ‎decline gained more momentum towards the session end. ‎The market moves on Monday was not as broad-based as it ‎was in the previous two session.‎ 13 of the ‎‎20 sectors closed in ‎the red zone. While the ratio of the decliners to the high ones ‎was 1.4:1. The ‎decline was led by the Banks, which was the ‎largest contributor (-3.3%), followed by the materials ‎sector ‎‎(-2.2%) and the energy sector (-2.7%). Index heavyweights, ‎namely ‎ Al Rajhi Bank (-3.9%), ‎followed by Aramco (-2.9%) ‎and Riyad Bank (-6.7%), pulled the index down the most. ‎Trading activity ‎also witnessed an increase in the volume and ‎value of trading for the second day by 34% and 56%, ‎‎‎respectively, to reach ‎‏172‏‎ million shares (‎‏6.8‏‎ billion riyals).‎ ‎TASI is unlikely to change its course given negativity around ‎international markets.‎

 

 

Market Wrap International:

The risk-off mode seen in the global assets in general ‎‎(currency, commodities, bonds) and equity markets in ‎particular last week has extended into this week. The fears of ‎global recession have become well-entrenched with the brunt ‎felt on across commodity, equity and real estate assets. In the ‎U.S, the benchmark equity indices moved down by 0.6-1.1%, ‎breaching June-22 lows to touch COVID-era levels. The yields ‎on the treasury inched up further across the tenures (10-year: ‎‎+21bps at 3.9% highest since 2010).‎

Europe turned out to be the region with more dramatic moves ‎in both currency and equity markets. The Pound Sterling lost ‎its footing and fell to a fresh all-time low against USD (down ‎‏1.6‏‎% for the session, ‎‏26.6‏‎% YTD) following announcement of a ‎generous fiscal package by the new government. Euro also ‎slides further below parity against USD (down ‎‏0.8‏‎% at 0.96). ‎The benchmark Stoxx Euro 600 Index fell 0.‎‏4‏‎% at session close ‎with banks, insurance being the major drags. Country level ‎indices also mirrored the same performance.‎

In Asia, investors absorbed the volatility seen in the U.S on ‎Friday. Major indices in the region fell by 0.‎‏4‏‎-‎‏3‏‎% with KOSPI (-‎‎3%) in Korea, TAIE (-2.‎‏4‏‎%) in Taiwan and TOPIX (-2.7%) in ‎Japan recording one of the biggest drops in the region. ‎Markets in China (Shanghai Composite) and Hong Kong ‎‎(HanSeng) failed to hang onto intraday gain to close the ‎session with modest losses.‎