Saudi Equities Close Out Week Higher as US Inflation Takes Spotlight
The Tadawul All Share Index ended the week 0.27% higher on Thursday as investors focused on the US' latest inflation print and its effects on the next rate moves of the US Federal Reserve.The US annual inflation rate rose to 4.2% in May, compared with 3.8% in April. Additionally, the core rate also climbed to 2.9% from 2.8% in the prior month."Broadly speaking, while results from the latest CPI report came in a touch softer than consensus expectations, underlying inflation still remains well above the FOMC's 2 percent inflation objective, which will seemingly keep policymakers squarely on the sideline for at least the next several meetings," Daiwa Capital Markets said in a note. "However, with the war's ultimate impact on the economy and interest rates remaining highly uncertain, policymakers will endeavor to be nimble in their approach - especially as a new Fed Chair presides over his first FOMC meeting next week."Also making headlines during the session are the latest attacks made by Iran and the US against each other. Iran, again, struck US bases in the Middle East, while the US targeted air defense sites, communication systems, and military surveillance.Back at home, Saudi Arabian Oil Co. (SASE:2222), d/b/a Saudi Aramco, will reportedly ship 12 million barrels of oil to China in July as the country is said to keep its crude oil sales to the Asian nation at record lows. Shares of the oil giant closed at 0.44% higher.Meanwhile, Alinma Bank (SASE:1150) edged up 0.65% as it concluded its 12-month share repurchase program for its employee stock incentives plan. The lender purchased 122.6 million Saudi riyals worth of shares at an average price of 24.51 riyals apiece.