Reports

2022-10-20

Daily Market Monitor 20-10-2022

 

Tadawul Review:

Tadawul All Share Index (TASI) remained choppy in ‎Wednesday’s session and managed to close with little change, ‎decreasing by just 15 points (-0.1%) to stay at 11,795 levels. ‎The index opened at 11,814, higher slightly from Tuesday's ‎close, and traded within a range of 82 points throughout the ‎day. In general, 8 out of 20 sectors closed in the green zone, ‎while 86 stocks rose and 108 fell. Banks (-0.3%), Materials (-‎‎0.2%), and Telecom (-0.6%) sectors were the major drags on ‎the index. Stocks-wise, Aramco (+0.4%), SABIC (+0.2%), and ‎Sipchem (+3.3%) contributed the most to the stability of the ‎index. The trading activity witnessed a decline of 12% and ‎‎15%, respectively, to reach 130mn shares and SAR5bn. The ‎index is likely to remain range-bound in near-term before the ‎Sep-end earnings season meaningfully gets underway.‎

 

 

 

Market Wrap International:

The global equity indices retreated on Wednesday with ‎concerns on inflation, rate hike and currencies once again ‎finding traction. The realization of much-hyped double digit ‎inflation in the U.K (10.1% in Sep-22, a 40-year high) and Fed ‎Speak added to investors’ concerns. The yields on the U.S ‎treasury bounced back with 10-year bond trading above 4.1% ‎mark, a 14-year high. In the U.S, the S&P 500 Index and ‎Nasdaq Composite fell by ‎‏0.7‏‎- ‎‏0.9‏‎%. The housing data (new ‎start) showed an 8.1% drop in Sep-22. and the weakness was ‎evident from the start and sustained through the session.‎

In Europe, the Stoxx Euro 600 Index pared intraday gains to ‎close with a drop of 0.5%. The CPI data in the U.K added ‎pressure on the BoE to make a bigger interest rate hike in its ‎upcoming meeting. The currencies in the region lost value ‎against USD with the Pound losing by and Euro by 0.‎‏9‏‎%for ‎both.‎

 

In Asia, markets broadly ended the two-day rally to broadly ‎drop at session close. Yen inched closer to 150 marks as the ‎latest statement from the Bank of Japan ruled out policy rate ‎increase to support the currency which is trading at 32-year ‎low. Markets in Hong Kong, China and Korea dropped by 0.6-‎‎2.4% while markets in Japan and India reared ahead.  ‎  ‎

 

Daily Market Monitor 20-10-2022