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The Saudi Stock Market ended virtually flat during the week as investors remained cautious about global economic recovery and the oil market. The general market index “TASI” ended? 0.04% higher during the week, to reach the level of 11,422.11 points. While in line the performance of the MSCI Tadawul 30 Index also reported a gain of 0.15% to close at 1,549.38 points. The gains of indices was supported by the 3.11% rise in the Utilities sector index followed by the Capital Goods sector with 2.76% gain while Media and Entertainment sector led the losing side with 4.25% decline. During the week four companies listed on the?Tadawul?hit their highest point in a year, with the performance of Middle East Paper Co. showing a rise of 155 percent over the past 52 weeks. Also, the global markets are under pressure from inflation which may prove less transitory than flagged by central bankers, and signs that governments are keen to get more tax from companies and to make them toe a stricter regulatory line.

On Economic Front, Saudi Arabia's economy posted a 1.8% annual growth in the second quarter, according to official gross domestic product (GDP) estimates, but the non-oil sector of the world's largest oil exporter lost steam. The figures, published on Monday by the General Authority for Statistics, revised upwards earlier estimates of a 1.5% overall growth in the second quarter, but they also revised non-oil growth to 8.4% from an earlier 10.1%. On a quarter-on-quarter basis, the Saudi economy grew 0.6% compared to the first three months of the year, with the oil sector fuelling the growth. Saudi Arabia was hit hard last year by the twin shock of the COVID-19 pandemic and record-low oil prices. The economy has rebounded this year, however, amid easing coronavirus-related restrictions, a vaccine roll-out and higher crude prices.? On the other hand, Saudi Arabia’s oil exports increased to 7.65 million barrels per day (bpd) in July, hitting the highest level in six months since recording 7.75 million bpd in January, according to official data on Thursday.?

There were also several positive data points on the economic front during the week. Saudi Arabia’s consumer price index (CPI) went up by 0.3% in August, compared to the same month in 2020, according to official data on Wednesday. The increase was mainly attributed to higher prices of transport with 6.5%, which was the main driver of the annual inflation. Food and beverages prices also rose by 1.9% last August, the communication services basket increased by 2.6%, and prices of tobacco edged up 0.6%. Prices of restaurants and hotels also added 0.6%, as accommodation services witnessed a 2.4% growth in prices, the Saudi General Authority for Statistics (GaStat) announced. Meanwhile, prices for education declined by 7.8%, while the housing, water, electricity, gas, and other fuels basket decreased by 3.5%. Also, Saudi Arabia’s wholesale price index for August rose by 12%, compared to the same month last year, official data revealed.

That’s about it for the previous week. But before we go, we wish to highlight that ExchangeConnect is providing a lot of support to clients and capital markets participants including the Companies, Investors, and Sell-Side Analysts in the form of e-meetings and digital interactions along with immaculate design and content of disclosures. We are also seeing a proactive interest in ESG and Sustainability products from many companies all over the world. If you need any help or would like to see the entire product bouquet of ExchangeConnect, please call or write to us. See you next week and till then…Good Bye! Take care

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