Tadawul Review:

Tadawul All Shares Index (TASI) dropped 141 points (-1.1%) ‎on Thursday to close at its one-month low levels of 12,143. ‎The impact of the decline in major global markets and ‎fluctuations in oil prices continued to have a negative bearing ‎on TASI. The index opened the session in negative territory ‎and maintained its downward trajectory. The decline was ‎broad-based as 17 out of 20 sectors closed negative, 151 ‎stocks fell, and ‎‏55‏‎ stocks rose. The usual suspects, namely the ‎Banks (-1.5%), Materials (-0.7%) and Energy (-‎‏1‏‎%) sectors, ‎cumulatively pulled the index down by 93 points. Stocks-wise, ‎Al-Rajhi Bank (-1.4%), Saudi National Bank (-2.2%), and ‎Aramco (-1.1%) put the most pressure on the index. Trading ‎activity witnessed a decline in the volume and value of ‎trading by -15% and -17%, respectively, to reach 163mn ‎shares and SAR6.9bn. TASI has marginally breached its ‎‎200DMA in the last trading session. Possibility of the index ‎taking support from its 200DMA is high as the impact of ‎interest rates movement in the U.S and oil price drop ‎subside. ‎

 

 

Market Wrap International:

The volatility in international markets continued unabated on ‎Friday with most major indices closed down. Fed rate hike, ‎energy supplies, latest lockdown in China and currency moves ‎were the major themes driving the equity indices. In the U.S, ‎the benchmark S&P 500 and Nasdaq Composite Index lost ‎another 1.2-1.3%, making cumulative decline since Jackson ‎Hole event the preceding Friday of ‎‏3.3‏‎% and ‎‏4.2‏‎% respectively. ‎Indices looked to build on the momentum from the previous ‎day’s marginal positive closing but pared gains. Ten out of ‎eleven sectors in the S&P 500 Index were negative The labor ‎market data (Wage growth and new hires) provided a mixed ‎reading for the next policy decision with a jump hike of ‎another 75bps becoming a foregone conclusion for most ‎participants. The treasury yields and US dollar index retreated ‎modestly post job data. ‎

In Europe, the Stoxx Euro 600 Index changed course as ‎valuation and drop in energy prices brought dip buying in ‎action. The index traded sideways for the first part of the ‎trading session before taking a definite direction following the ‎release of economic data in the U.S.‎

In Asia, equity indices were broadly negative with currency ‎weakness and latest lockdown measures in China dragging the ‎markets. Equity indices in Hong Kong (HangSeng: -0.7%), Japan ‎‎(Topix:-0.3%, currency touching multi-decade low), Korea ‎‎(KOSPI: -0.3%), closed negative. The benchmark SENSEX ‎Index in India posted a marginal gain of 0.4% while in China ‎‎(Shanghai Composite) was broadly unchanged.  ‎