Reports

2023-01-31

Daily Market Monitor 31-01-2023

Tadawul Review:

Tadawul All-Share Index (TASI) ended its series of gains, ‎which continued for seven consecutive sessions, to decline by ‎‎-29 points (-0.3%) and close at 10,811 levels. TASI started ‎Monday's session at the same level as the previous closing, ‎but soon it started to gradually decline due to selling ‎pressure, reaching its intraday low in the middle of the ‎session, down by 120 points, but TASI started to rise ‎gradually after that to complete the rest of the session and ‎compensate some of its losses and add +91 points off its ‎intraday low. In general, 13 out of 20 sectors closed in the ‎red zone, while 69 stocks rose and 134 fell. Banks (-0.7%), ‎Materials (-0.6%), and Media (-2%) sectors were the major ‎drags on the index. Stocks-wise, Saudi National Bank (-2.1%), ‎Riyad Bank (-1.9%), and Al Rajhi Bank (-0.4%) pulled the ‎index down the most. The trading activity witnessed a ‎significant improvement in volume and value by 40% and 54%, ‎respectively, to reach 164mn shares and SAR5bn.‎

 

 

 

Market Wrap International:

The global equity markets became more circumspective ahead ‎of decisions by the global central bank later this week. The ‎market reaction to new economic data on inflation and ‎economic activity and overall valuation underpin investors’ ‎cautiousness. In the U.S, the key benchmarked reversed ‎course on Monday. The result season so far has failed to ‎produce any major surprise for the market. The S&P 500 and ‎Nasdaq Composite indices were down by -1.3% and -2%. The ‎yields on treasury bond broadly inched higher by 4-6bps.‎

In Europe, the Stoxx Europe 600 Index could not continue its ‎positive momentum and fell by 0.2% at session close. The ‎country level indices were also lower by -0.2|+0.3%. Both ECB ‎and BOE are expected to lift interest rates by 50bps each in a ‎bid to contain inflationary pressure.‎

 

In Asia, major indices moved in a narrow range and were down ‎‎+0.1%-0.2%. However, TAIEX and Nikkei buckled the trend ‎and were up 3.8% and 0.2% respectively. Strong currency and ‎heavy foreign inflows in tech names lifted the indices in both ‎countries. TAIEX also played catch up after the market ‎reopened after the New Year holidays. In India, companies ‎linked with Adani Group continued the precipitous fall. ‎

 

Daily Market Monitor 31-01-2023