Tadawul Review:

Tadawul All-Share Index (TASI) ended the last session of ‎January on a negative note on Tuesday, falling -18 points (-‎‎0.2%) to close at 10,793, capping the monthly gains at 314 ‎points (+3%). TASI opened the session unchanged but faced ‎selling pressure in the first hour of trading, falling by -93 ‎points to its intraday low. Then TASI was able to recover half ‎of its losses till the end of the normal trading session amid ‎volatility. In the closing auction, TASI was able to significantly ‎compensate for its losses, adding 45 points. In general, 12 out ‎of 20 sectors closed in the red zone, while 97 stocks rose and ‎‎113 fell. Materials (-0.7%), Telecom (-1.4%), and Utilities (-‎‎0.8%) sectors were the major drags on the index. Stocks-‎wise, SABIC (-1.8%), Riyad Bank (-2.1%), and STC (-1.5%) ‎pulled the index down the most. The trading activity ‎witnessed a decline in the volume and value of trading by ‎‎10% and 8%, respectively, to reach 148mn shares and ‎SAR4.6bn. TASI is likely to remain range-bound ahead of an ‎important decision to be the Fed after the trading session ‎today. ‎

 

 

Market Wrap International:

The global equity markets moved in divergent directions on ‎Tuesday as focus remained on the upcoming rate decision of ‎FOMC at the conclusion of its two-day meeting on ‎Wednesday. In the U.S, the treasury yields clawed back the ‎uptick seen in the previous session while commodity prices ‎‎(energy, industrial metal) eased on demand outlook. The S&P ‎‎500 and Nasdaq Composite indices wobbled in initial trading ‎but regained the momentum soon and closed the month with ‎sizable gains of 1.5% and 1.7%. All sectors (11 sectors) in the ‎S&P 500 closed higher. Earnings season has produced no major ‎surprises this week so far.‎

In Europe, the Stoxx Europe 600 Index sustained 3rd straight ‎losses on Tuesday and fell 0.3%. The investors ignored the ‎better-than-expected growth numbers in France on inflation ‎uptick in Spain and broader fears on rate decision later this ‎week. The country level indices also moved sideways and ‎closed with little changed. ‎

In Asia, markets digested the general theme of profit taking ‎and fell 0.4-1.5%. Despite losses,  the broader index remained ‎on course to deliver one of the best monthly performances in ‎Jan since 1994. Markets also sidestepped the strong GDP data ‎from China, reaffirming the market's view of rebound in ‎activity post easing of COVID-19 restrictions. TAIEX, a major ‎outperformer in the last session, pulled back by 1.5% and gave ‎up half of the gains. Hang Seng (-1%) and KOSPI (-1%) were ‎other notable laggards in the region. ‎