Reports

2023-02-12

Daily Market Monitor 12-02-2023

Tadawul Review:

Tadawul All-Share Index (TASI) closed down on Tuesday, ‎falling -96 points (-0.9%) to close at 10,412 levels, which is ‎the lowest closing level since 12/27/2022 (44 trading days). ‎TASI made a modest positive opening (+10 points), but it ‎quickly came under selling pressure and fell for the rest of ‎the session until it reached its intraday low, declining by -116 ‎points, before it partially reduced its losses during the last ‎trading hours. In general, 16 out of 20 sectors closed in the ‎red zone, while 77 stocks rose and 121 fell. Banks (-1.1%), ‎Materials (-1.3%), and Food and beverages (-2%) sectors ‎were the major drags on the index and contributed a total of ‎‎-67 points. Stocks-wise, Al Rajhi Bank (-1.8%), ACWA Power ‎‎(-3%), and Saudi National Bank (-0.7%) pulled the index ‎down the most. The trading volume activity declined by 25% ‎DoD to reach 117mn shares, while the trading value ‎increased by 3% DoD to reach SAR3.5bn. TASI is likely to ‎make an attempt to reverse its course with the support from ‎recovery in oil prices and softened valuation. ‎

 

 

Market Wrap International:

Cautiousness continued to prevail in global equity markets ‎ahead of important data on CPI in the U.S in the following ‎week. Lack of fresh macro news flow and a recent strong ‎performance also weighed on the market performance on ‎Friday. The treasury yields in the U.S recorded one more ‎session of gains with 4-8bps rise across tenures. The stock ‎market gauges moved in divergent directions in the U.S with ‎the S&P 500 Index rising by 0.22%, helped primarily by energy ‎‎, Utilities and health sectors. The Nasdaq Composite, however, ‎recorded a decline of 0.6% as tech -heavy index was dragged ‎down by the decline in tech stocks.‎

In Europe, the Stoxx Europe 600 Index fell ‎‏1‏‎% from its fresh ‎all time high touched a day before as profit taking set in. ‎Earnings outlook and monetary policy action are increasingly ‎becoming a center focus of the investors. The country level ‎indices too moved in the same direction and were down by ‎‎0.4-1.4%.‎

In Asia, markets broadly moved lower on Friday with ‎HangSeng (-2%) being the major underperformer. Other ‎indices dropped by -0.5% | 0.3%. Currency and growth outlook ‎remained the two major issues for the region in the backdrop ‎of the market's view of higher for longer for the interest rate ‎in the U.S. Recent strong performance in many of the indices ‎also weighed on the sentiment. ‎

Daily Market Monitor 12-02-2023