Tadawul Review:

Tadawul All-Share Index (TASI) closed down -108 points (-‎‎1.1%) on Sunday to close at 10,138 levels, which is the lowest ‎closing level since April 25, 2021 (10,142). TASI opened the ‎session positively and continued its rise in the first hours of ‎trading as it reached its intraday high, achieving +80 points ‎from the previous close. In the middle of the trading hours, ‎TASI started to roll back to the end of the trading session, ‎losing all of its gains. In general, 18 sectors out of 20 closed in ‎the red zone, while 28 stocks rose and 179 fell. Materials (-‎‎2%), Banks (-0.6%), and Energy (-1.7%) sectors were the ‎major drags on the index and contributed a total of -65 ‎points. Stocks-wise, Aramco (-1.8%), Al Rajhi Bank (-0.9%), ‎and Alinma Bank (-4.3%) pulled the index down the most. ‎The trading activity also witnessed a decline in the volume ‎and value of trading by 26% and 27%, respectively, to reach ‎‎84mn shares and SAR3bn. While volatility is likely to remain ‎high 10k mark remains crucial for the index in near-term.‎

 

 

Market Wrap International:

All eyes will be on the U.S CPI data due on Tuesday, decisions ‎by the central banks in the U.S, Europe and China, and the ‎COVID-19 updates in China. All in all, markets are bracing for ‎a more volatile week ahead given consensus view on key issues ‎this week, positioning, and recent performance. In the U.S, the ‎FOMC is set to decelerate the pace of interest rate from ‎‎75bps to 50bps in its two-day meeting set to conclude on ‎Wednesday. The FOMC will also have the latest CPI data for ‎the month of Nov-22 due to be released on Tuesday. For the ‎market, the more important aspect of the FOMC meeting is ‎post rate hike comments to gauge the peak and the timing of ‎current interest rate cycle and any hint for reversal in interest ‎rate in future. ‎

In Europe, the ECB Governing Council meeting is due on ‎Thursday to decide on the interest rate hike. Consensus ‎expectations show 50bps hike in rate. For the regional ‎investors, besides monetary policy decisions, the unfolding ‎energy supply shortage in major economies in the peak winter ‎season will also be a major issue to track. ‎

In Asia, the recent market rally triggered by optimism on ‎reopening of the Chinese economy is set to undergo a litmus ‎test next week. The growing number of infection cases, ‎especially in areas where lock-down restrictions have been ‎eased, will test the resolve of Chinese authorities to stick to ‎current policy ahead of new-year vacations. Central bank in ‎China will be a lone outlier on interest with its likely status-‎quo decision next week. Other important data in the region ‎relates to trade, industrial production in China and Japan.