Tadawul Review:

Tadawul All Share Index (TASI) recorded positive closing for ‎the third straight session on ‎Tuesday and a gain of 62 points ‎‎(+0.5%) at 12,084 levels. TASI underwent an initial nervous ‎‎trading period in the first two hours of session after modest ‎positive opening. However, the ‎index started its gradual rise ‎to compensate for its losses and gained 113points from ‎intraday ‎low. In general, 17 out of 20 sectors closed in the ‎green zone, while advance to decline ratio ‎came in at1.8:1. ‎Banks (+0.7%), Materials (+0.4%) and Utilities (+1.6%) ‎sectors contributed ‎the most to the index's rise (+41 points). ‎Stock-wise, Al-Rajhi Bank (+2%), Banque Saudi ‎Fransi ‎‎(+4.2%), and Sipchem (+4%) contributed most to the stability ‎and rise of the index. ‎Alujain Corp and Bawan were the top ‎gainers during the session, up by +4.4% for both. The ‎trading ‎activity witnessed a remarkable improvement in the volume ‎and value of trading by ‎‎+22% and +21% to reach 137mn ‎shares and SAR5.3bn. Negative volatility in international ‎‎markets post release of CPI data in the U.S can have a ‎negative bearing on TASI. ‎

 

 

Market Wrap International:

The global equity markets snapped a four-day rally on above-‎expected CPI print for Aug-22. The reverberations of the ‎latest inflation data were felt in almost all asset classes and ‎across regions. Dollar gained, Euro gave back intraday gains to ‎close below parity one again against USD, US treasury ‎reversed initial rally, and commodity prices pared gains. The ‎above-expected inflation prints of 8.3% (vs 8.5% last month) ‎came in the backdrop of expectations of softer CPI reading of ‎‎8.1%. The surprise as such does not change investors’ well-‎entrenched expectations of a 75bps hike in the upcoming ‎FOMC meeting (due on 21st Sep). In the U.S, the benchmark ‎indices lost 3.9-5.2% for the day. Tech and other growth stocks ‎received the major brunt of the selling pressure.  ‎

In Europe, the indices traded in the positive territory for most ‎of the day but presented a completely different picture once ‎US CPI data was released. The benchmark Stoxx Euro 600 ‎Index pared intraday gains of 0.6% to close the session with a ‎loss of 1.5% on Tuesday, reversing a three-day rally. The initial ‎investors' optimism stemmed from plans to roll out a hefty ‎economic support package.‎

In Asia, trading sessions in the region ended before the release ‎of CPI data in the U.S. Many markets (China, Hong Kong, ‎Korea) returned to trading following a national holiday on ‎Monday and played a catch-up. KOSPI in Korea jumped 2.7% ‎on the latest announcement of export curbs from U.S exports ‎of semiconductor and other chips to China. SENSEX (+0.8%) ‎in India, Topix (+0.3%) in Japan and Shanghai Composite ‎‎(+0.1%) in China also closed positive.‎