Tadawul Review:

Tadawul All-Share Index (TASI) declined on Sunday for the ‎second day in a row by -99 points (-0.9%) to close at 10,724 ‎levels, which is the lowest closing level since August 6th, 2021 ‎‎(10,735). TASI opened the session positively but was soon ‎exposed to selling pressure and declined for the rest of the ‎session, closing at its intraday low. Overall, 18 out of 20 ‎sectors closed in the red, while 30 stocks rose and 173 ‎declined. Banks (-0.8%), Materials (-1.3%), and Telecom (-‎‎1.3%) sectors were the major drags on the index and ‎contributed a total of -57 points. Stocks-wise, Saudi National ‎Bank (-1.2%), Saudi Maaden (-2.9%), and Alinma Bank (-‎‎2.4%) pulled the index down the most. The trading activity ‎also witnessed a decline in the volume and value of trading by ‎‎30% and 40%, respectively, to reach 85.6mn shares and ‎SAR2.9bn.‎

 

 

Market Wrap International:

The global equity markets will likely keep a close eye on the ‎upcoming FOMC and ECB meetings and key economic data ahead ‎of the meetings. Another key theme for the next week is the ‎economic reopening in China. All in all, markets are likely to remain ‎tentative ahead of important events especially given the recent ‎performance in key indices across three regions. Last week’s ‎Fedspeak and economic data built divergent expectations regarding ‎the timing of moderation of interest rate hikes and the peak of ‎interest rate. Next week, two more important data points are ‎producer price inflation and consumer inflation expectations. The ‎former will likely show further moderation in inflation pressure while ‎the latter will likely highlight the impact of recent drop in ‎commodity prices on consumer expectations.‎

In Europe, the veracity of the introduction of a price cap by the EU ‎on Russian oil exports will be an important theme to follow. In ‎terms of data, industrial production data in Germany may ‎substantiate investors’ fears of contraction in the economy in 4Q.‎

In Asia, the economic data (CPI, PPI, external account, production) ‎in China will likely highlight the extent of contraction in the ‎economy due to COVID-19 policies. However, investors are more ‎interested in having clarity on the government plans of economic re-‎opening. Despite negative updates on the fresh cases in China, ‎equity indices have moved ahead. Other important data in the ‎region relates to updates on Japan (GDP), policy action in India ‎and Australia.  ‎