Tadawul Review:

Tadawul All-Share Index (TASI) reversed the two-day rally ‎and dropped by -112 points (-1%) on Tuesday to close at ‎‎11,487. TASI started the session on a muted note, but soon ‎the index came under selling pressure and made an intraday ‎low of 139 points before the closing auction. In the closing ‎auction, the index was able to add +27 points to trim some ‎of its daily losses. In general, 16 sectors out of 20 closed in ‎the red zone, while 56 shares rose and 150 fell. The index's ‎losses were driven by Banks (-0.9%), Materials (-0.9%), and ‎Utilities (-2.9%) sectors, which contributed to the decline of ‎the index by a total of 65 points. Among stocks, Saudi ‎National Bank (-2.7%), ACWA Power (-3.9%), and Riyad Bank ‎‎(-1.5%) pulled the index down the most. The trading volume ‎activity increased by +3% DoD to reach 146mn shares, while ‎the trading value decreased by -9% DoD to reach SAR5.9bn. ‎The index may look to rebuild the momentum though latest ‎movement in the SAIBOR rates over 3-12mth terms remains ‎a key concern for banking sector’s funding cost in near-term.  ‎

 

 

Market Wrap International:

The global equity indices sustained its rally into a third straight ‎session amid clear signs investors’ cautiousness over the upcoming ‎U.S CPI data S due on Thursday and the results of midterm ‎elections in the U.S. The nascent optimism over easing of COVID-19 ‎restrictions in China fizzled out. The treasury yields retreated further ‎with 2-3bps decline across tenures.The S&P 500 Index and Nasdaq ‎Composite Index jumped ‎‏0.5‏‎ and ‎‏0.6‏‎%. Tech and materials were the ‎major gainers while energy stocks lagged.‎

In Europe, investors traded cautiously with the Stoxx Euro 600 Index ‎edging higher by 0.‎‏8‏‎%. Euro clinched to parity with USD. Among ‎major sectors, energy was a laggard given the risk of higher windfall ‎taxes on the industry. Country level indices also crawled up in the ‎range of 0.1-‎‏1.1‏‎%.‎

The Asian indices moved in divergent directions with indices in ‎China (Shanghai Composite: -0.4%) and Hong Kong (HangSeng:-‎‎0.2%) snapping  a four-day rally while the rest of the major indices ‎moving higher. The latest COVID-19 data in China has dashed ‎hopes of an early easing of COVID-19 restrictions. The latest update ‎dragged indices in Hong Kong and China. Indices in Japan (+Topix: ‎‎+1.2%), Korea (KOSPI: 1.1%) and Taiwan (TAIEX: +0.9%)  were ‎notable performers in the region on the easing currency risk and ‎interest rate outlook.‎