Tadawul Review:

Tadawul All Share Index (TASI) started the week on a ‎positive note, ending Sunday's session with an increase of 43 ‎points (+0.4%) to close at 12,007 levels, the highest since mid ‎of last month. TASI opened positive and reached an intraday ‎high of 12,076 (+112 points), before paring gains. A slew of ‎result announcements before the market open provided the ‎impetus to the market. In general, 17 sectors out of 20 ‎closed in the green, while 135 stocks rose and 65 stocks fell. ‎Energy (+1.3%), Materials (+0.6%), and Telecom (+1.1%) ‎pushed the index above 12,000 points (total contribution: 28 ‎points). Stock-wise, Aramco (+1.3%) led the charge, followed ‎by Maaden (+2.5%) and ACWA Power (+2.1%). The trading ‎activity also witnessed a decrease in the volume and value of ‎trading by -8% and -9%, respectively, to reach 130mn shares ‎and SAR5.2bn. The market may look to consolidate above ‎the 12k mark with ongoing earnings season and robust oil ‎prices providing support.‎

 

 

 

Market Wrap International:

The global equity indices will likely see an eventful week next week ‎with results season, important economic data and policy decision ‎by ECB testing the investors' nerves. In the U.S, the results of the ‎tech sector will dominate the investors’ attention with many mega-‎cap companies scheduled to release the 3Q22 report card. On ‎economic data, purview of 3Q GDP (expectation of rebound in ‎growth from consecutive drop in the past two quarters), consumer ‎sentiment data and PCE (Personal Consumption Expenditure) are ‎some of the important data points for the markets. The rebound in ‎the key indices on Friday was driven by the investors’ view that the ‎Fed may become less hawkish following the policy decision in early ‎Nov-22. The upcoming economic data remains crucial to further ‎support the view.‎

In Europe, the upcoming policy decision by the ECB (another jumbo ‎hike of 75bps likely) and any let-up in the ongoing political ‎development in the U.K (new prime minister to be announced on ‎‎28th Oct) will be key focus areas. 3Q22 preliminary GDP growth ‎estimate for the region and GDP estimate for Germany & France are ‎some of the more important data sets due next week in the region.‎

 

In Asia, investors will likely show reaction to the latest ‎appointments on key positions in China following the conclusion of ‎an important gathering of leaders of the Chinese Communist Party ‎‎(CPP) over the weekend. Other important events include policy ‎announcement by Bank of Japan (BoJ), GDP growth estimates for ‎‎3Q22 (China in particular) and result seasons (dominated by banks) ‎will be closely tracked. Overall, the region may look to recover with ‎results season and valuation providing the much-needed support.‎