2023-09-14
Daily Market Monitor 14-09-2023
Tadawul Review:
The Tadawul All Share Index (TASI) ended Wednesday's session on a negative note, closing at the 11,122 level with a decrease of 34 points (-0.3%). The session started with a negative opening of -25 points, but then the index climbed, reaching its intraday high with a 36-point gain in the first trading hour. However, after the initial jump, the index started to decline for the remainder of the session until its end. In general, 14 out of 20 sectors closed in the red zone, while 104 of 223 shares fell and 106 rose. Materials (-1.1%), Banks (-0.3%), and Telecom (-1.1%) sectors contributed the most to the index fall. Stockwise, Saudi National Bank (-0.9%), Saudi Telecom (-0.9%), and Bupa Arabia (-3.3%) were the major contributors. The trading activity remained unchanged with 235mn, while the value increased by 5%, to reach SAR6.3bn in value traded.
In the global markets, stronger-than-expected inflation data in August raised concerns about the Federal Reserve potentially maintaining higher interest rates for an extended period. The U.S stock indices closed up (S&P 500:+0.1% with 6 out of 11 listed sectors gained, and nasdaq composite:+0.3%) as the Labor Department reported a monthly increase of 0.6% and 0.3%. The yields on 2-10-year tenures climbed on Wednesday by 0.4 |0.6bps..
In Europe, as the meeting on Thursday approaches, investors should anticipate that additional monetary tightening will diminish the near-term outlook for the economy. The Stoxx Europe 600 edged down by -0.3% and The FTSE 100 index closed with slight change, as the pound declined. The country-level indices closed negatively at the same level (DAX:-0.4%: SAS-0.4%).The expectations of likely interest rate hikes by the European Central Bank on Thursday will likely dampen the immediate prospects of the economy.
In Asia, despite Beijing's efforts to bolster the market, the main Asian stock index has encountered challenges in sustaining its recovery since late August. Chinese equities continue to face downward pressure (Shanghai Composite: -0.4%, Hang Seng: -0.1%) as investors anxiously await additional stimulus measures and indications of a more resilient resurgence of the economy. The benchmarks in Japan also showed a negative performance (TOPIX: -0.1% |NIKKEI 225: -0.2%). Other major indices within the region fluctuated within a range of (-0.1|+0.4).
Daily Market Monitor 14-09-2023
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