Tadawul Review:

Tadawul All Share Index (TASI) underwent yet another ‎volatile session and fell 131 points (-1.1%) on Wednesday at ‎‎11,863.81, recording the third ‎consecutive day of decline. The ‎market opened with a decrease of 11 points from the ‎previous ‎close and reached the intraday high of +50 points. ‎However, the index came under selling pressure till the ‎session's close. 19 out of 20 sectors closed in the red while ‎only 22 stocks were in positive. The materials (-2.5%) and ‎banking sector (-0.8%) were the major drags. As for the ‎shares, ‎Al Rajhi Bank (-0.8%), Bank Saudi Fransi (-3.6%) and ‎Aramco (-0.7%) had the greatest impact on the ‎decline in the ‎index. In general, the trading value increased by 5% to reach ‎‎5.6 billion riyals, while ‎the trading volume decreased -3% to ‎reach 132 million shares compared to the previous day. A ‎steep drop in oil prices and volatility in global markets may ‎continue to have bearing on TASI.‎

 

 

Market Wrap International:

The global equity markets moved in divergent directions on ‎Wednesday as commodity prices softened. A sustained drop in ‎commodity prices may lower inflationary pressure and push ‎the central banks to adopt a less hawkish stance. The yields ‎on US treasury eased, though the dollar index set a new all-‎time high on currency weakness in Asia. In the U.S, the S&P ‎‎500 and Nasdaq Composite Index rose 1.8-2.1%, shrugging off ‎the negative momentum from the past two sessions. All ‎sectors, except energy, contributed to the rise in the indices ‎with tech, utilities and consumers leading the charge.‎

In Europe, the Stoxx Euro 600 Index gave away gains from ‎the past two sessions and dropped by 0.6%. Investors were not ‎budged by the latest news flow on possible economic support ‎package by the EU to ease the energy cost. The combination ‎of supply shortage and price increase threatened power ‎outages and gas load management in many parts of the region ‎in the winter season. Also, in UK Ftse100 dropped by 0.9%.‎

In Asia, investors were spooked by the consistent rise in yields ‎in the U.S and currency weakness in many of the economics ‎‎(China, Japan, Korea, Malaysia). Many currencies in the region ‎made somber records and fell to multi-year low. Equity indices ‎in Korea (KOSPI: -1.4%), Taiwan (TAIEX: -1.8%) took the brunt ‎of selling in tech stocks. China’s Shanghai Composite Index ‎‎(+0.1%) remained once again unscathed for the third straight ‎session, thanks to new measures to support the economy. ‎