2023-05-24
Daily Market Monitor 24-05-2023
Tadawul Review:
Tadawul All Share Index (TASI) ended the session negatively for the third day in a row, down by 53 points (-0.5%) to settle at 11,276 levels. TASI opened the session positively, by 5 points. However, in the middle of the session, TASI came under selling pressure and started falling for the rest of the trading session to close at its intraday low. In general, 13 out of 20 sectors closed in the red zone, while 107 stocks fell and 105 rose. Banks (-0.9%), Telecom (-0.8%), and Energy (-0.5%) sectors contributed the most to the index's 45-point fall. Stockwise, Riyadh Bank (-3.4%), Al Rajhi Bank (-0.5%), and Aramco (-0.5%) were the major contributors. The trading volume activity increased by 2% DoD to reach 215mn shares, while the trading value decreased by -2% DoD to reach SAR6.6bn. The index is likely to remain choppy given the volatility in the international markets.
The global equity indices moved down on Tuesday as investors responded to concerns on debt ceiling in the U.S, economic data in Europe and geopolitical tension in Asia. In the U.S, the much-hyped meeting between the President and the House Speaker concluded without any productive results though both leaders remained committed to resolving the issue before the deadline. The sovereign yields in the U.S once again moved higher. The economic data in the U.S (new home sales) once again highlighted the possibility of the U.S economy averting a deeper slowdown or the recession. The benchmark S&P 500 Index and Nasdaq Composite closed the session with 1.1% and 1.3% losses respectively. Barring energy, the remaining ten sectors listed on S&P 500 recorded a drop.
In Europe, the investors' sentiments were dictated by the weak industrial production data in the region and the lack of progress on the debt ceiling in the U.S. Frothy valuation in select names, particularly in luxury good names, came in the limelight with investors responding to the risk of weak economic growth ahead. The Stoxx Europe 600 Index fell by 0.6% , driven by tech and consumer discretionary.
In Asia, all major markets headed for the south on signs of fresh trade war between the two biggest economies in the region, Japan and China. In the latest newsflow, the govt in Japan decided to put in place fresh controls over chip exports to China. The key indices in both Japan (Topix:-0.7%, erasing initial gains) and China (Shanghai Composite:-1.5%, Hang Seng:-1.3%) closed with losses. Sensex(+0.03%) in India KOSPI (+0.4%) in Korea closed higher while TAIEX was little changed.
Daily Market Monitor 24-05-2023
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