Tadawul Review:

Tadawul All Share Index (TASI) dropped by 75 points (-0.6%) ‎to close at 12,45‎‏6‏‎ levels. The index looked to build   ‎momentum at the start of the session on Tuesday and made ‎an intraday high of +57points. However, volatility in global ‎commodity prices forced the index to change its course. ‎Energy (-0.7%) and materials (-0.9%) names, the two key ‎beneficiaries of recent newslfow over supply crunch in ‎Europe, along with banks (-0.6%) were the major drags on ‎the index performance. All in all, trading volumes and value ‎dropped by ‎‏10‏‎% and ‎‏0.6‏‎% while Advance to Decline ratio ‎came in at 1:2. Software & Services (1.5%), Diversified ‎Financials (0.‎‏7‏‎%) and Consumer Durable‎‏ ‏‎(0.6%) were the ‎major gainers for the day. TASI is likely remain directionless ‎in coming sessions with conflicting impact of global macro ‎updates.‎

 

Market Wrap International:

The global equity indices moved in divergent directions on ‎Tuesday following two days of sell-off post Fed Chairman’s ‎Jackson Hole comments on last Friday. The new economic ‎data in the U.S (consumer sentiments, Job Opening) and the ‎latest news flow on energy supplies in Europe provided a lift ‎to indices on both sides of the Atlantic. However, the positivity ‎proved to be short-lived as investors realized strong data ‎makes a stronger case for sustained rate hikes to rein in ‎inflation. U.S treasury yields increased (2-Yr bond touched a ‎multi-year high), while commodity prices slid. In the U.S, the ‎benchmark S&P 500 Index and Nasdaq Composite Index ‎extended losses into 3rd straight session and dropped by 1.1% ‎for both of them, dragged by energy, tech and other growth ‎stocks.‎

In Europe, the benchmark Stoxx Euro 600 Index gave up ‎intraday gains to close the session with a –0.7% drop. The ‎investors remained cautious ahead of CPI data release for the ‎region (due tomorrow). Country-level benchmarks also ‎underwent a similar pattern.‎

In Asia, all major equity indices, except for HangSeng in Hong ‎Kong and Shanghai Composite in China for both of them  (-0.4%), moved ‎higher in the range of 0.2-1.2%. Attractive valuation following ‎recent correction and earnings surprises renewed investors' ‎interest. Sensex in India (+2.7%) was a major outperformer on ‎Tuesday led by financials and tech companies. Indices in China ‎and Hong Kong were dragged by investors' nervousness over ‎continuing lock-down measures in parts of China and the ‎release of PMI data (due tomorrow). ‎