Tadawul Review:

Tadawul All-Share Index (TASI) closed Sunday's session up ‎‎+82 (+0.7%) to close at 11,521 levels. TASI index opened the ‎session positively, up 122 points. The rise was due to the rise ‎in Brent oil prices (+4.3%) and the major global market ‎indices.‎‏ ‏TASI continued to rise in the first hours of the session, ‎as it reached an intraday high point, rising by 170 points, ‎before reducing its intraday gains. In general, 14 sectors out ‎of 20 closed in the green zone, while 156 shares rose and 46 ‎fell. Banks (+‎‏0.6‏‎%), Materials (+1%), and Energy (+1.6%) ‎sectors contributed the most to the index's rise (+55 points). ‎Stock-wise, Aramco (+1.6%), Saudi National Bank (+1%), and ‎Al-Rajhi Bank (+0.5%) contributed most to the stability and ‎rise of the index. Trading activity also witnessed a decline in ‎volume and value by 18% for both, to reach 114mn shares ‎and SAR4bn‏.‏‎ The index may look to sustain its recovery amid ‎high intraday volatility.‎

 

 

Market Wrap International:

The economic data release for the next week has assumed ‎added importance in the backdrop of heightened focus on ‎inflation and interest. The CPI print in U.S, China, Germany, ‎Taiwan and India, preliminary GDP estimate in the U.K, ‎consumer confidence and industrial production data in a ‎number of countries will remain a major focus area of ‎investors. Overall, investors are likely to remain edgy with ‎nervous trading producing magnified volatility in the market in ‎either direction. In the U.S, the fragile investors’ sentiments ‎are tied to CPI reading in particular in order to gauge the ‎future direction of Fed’s policy rate. With most of the results ‎already in the bad, a strong positive closing on Friday will be ‎out to test.‎

In Europe, all eyes will be on GDP growth data in the U.K ‎where BoE has projected a0.5% decline in 3Q vs an anemic ‎growth of 0.2% in 2Q. With the political crisis in the 3Q and a ‎steep rate hike , the risk of recession in the U.K has grown.  ‎

In Asia, the latest statement from Chinese authorities on ‎continuation of current COVID-19 restriction may dampen the ‎sentiments. However, valuation in HK, Chinese markets ‎remain attractive despite a strong recovery last week and may ‎provide downside protection. For Japan and other countries in ‎the region with weak currency performance of late, the CPI in ‎the U.S will be a major macro driver alongside country specific ‎economic data. ‎