Tadawul Review:

Tadawul All Shares Index (TASI) dropped by 172 points (-‎‎1.4%) on Wednesday, capping the monthly gains to 84 points ‎‎(+0.7% MoM: YTD: 9%). The index started the session on a ‎weak note and continued the decline amid investors' fears, ‎affected by the volatility in the major global markets and oil ‎prices. In general, 18 out of 20 sectors closed with a decline, ‎while 169 shares declined, and 37 shares rose out of 217 ‎shares. Banks (-1.3%), Materials (-2.4%), and Energy (-1.7%) ‎sectors were the major drags on the index and contributed ‎to the index's drop of 120 points. Amongst the stocks, ‎Aramco (-1.7%), Riyad Bank (-4.7%) and SABIC Agri-‎Nutrients (-4.7%) were the drags for the index. The trading ‎activity witnessed a significant improvement in the volume ‎and value of trading by +27% and +19% to reach 192mn ‎shares and SAR8.3bn, which is the highest during the ‎month. The index is likely to be influenced by volatility in ‎international markets given no major triggers in near-term ‎and weakness in oil prices.‎

 

 

 

Market Wrap International:

There was no major respite for the global equity indices on ‎Wednesday, the fourth straight session post Jackson Hole address ‎last Friday.  The major indices concluded the month on a weak note ‎as economic data (CPI in Euro, factory data in China) added to ‎already subdued sentiments. In the U.S, the benchmark indices ‎dropped by another ‎‏0.6‏‎-‎‏0.9‏‎% with risk-off mode forcing investors to ‎look for cover in defensive names and cash. The yield curve once ‎again moved higher on Fed speak.‎

In Europe, the release of CPI data for Aug (9.1% YoY, another all-‎time high) spurred market chatter of a jumbo rate hike of 75bps in ‎the upcoming policy decision in late Sep. The benchmark Stoxx ‎Euro 600 Index fall by ‎‏1.1‏‎% at session close. Country level indices ‎mirrored a similar trend.  Euro held its ground above parity against ‎USD while commodity prices dropped.‎

 

In Asia, the equity markets showed some signs of stability on ‎Wednesday. Indices in China (Shanghai Composite: -0.8%) and ‎Hong Kong (HangSeng: unchanged) were dodged by wider ‎concerns of fresh COVID-19 related lockdown and new economic ‎data. Equity indices in Korea (KOSPI: +0.9%) and Taiwan (TAIEX: ‎‎+0.9%) moved up while indices in Japan were down by 0.3-0.4%. ‎Market in India was closed for a national holiday. ‎‎