2023-11-06
Daily Market Monitor 6-11-2023
Tadawul Review:
Tadawul All Share Index (TASI) rose for the sixth day of Sunday's session, up by +86 points (+0.8%) to close at 10,939 levels. TASI opened on a positive note with 63 points but later experienced a significant drop from its peak to a low point. However, the index managed to rebound steadily and ended the session on an upward trajectory. Overall, 17 out of 20 sectors closed in the green zone, while 163 shares rose and 55 fell. Banks (+0.6%), Materials (+1.3%), and Utilities (+2.4%) sectors contributed the most to the index rise. Stockwise ACWA Power (+3.2%), Sabic (+2.7%), and Aramco (+0.5%) were the major contributors. The trading activity witnessed a decline in volume and value of -17% and -29%, respectively, to reach 182mn shares and SAR4.8bn in value traded.
In the global markets, following the stock market's strongest performance in nearly a year, market participants are now speculating after the US job growth in October that central banks have concluded their interest rate hikes, inflation is declining, and corporate earnings remain strong. The yields on the benchmark 10-year US Treasury are down about 35 basis points from 16-year highs hit in October.
In Europe, after the expression from the interest rate setter of Bank of England about the suboptimal performance of Britain's labor market, it was suggested that it could contribute to the persistence of high interest rates. Investors might continue to shift away from defensive sectors like healthcare and towards industries such as real estate and automotive.
In Asia, the persistent deflationary pressures in China highlight the vulnerability of the ongoing economic recovery as 2023 approaches its end. Concurrently, in response to market turmoil and the discovery of widespread illegal naked short-selling by global investment banks, South Korea has decided to ban stock short-selling until June 2024.
Daily Market Monitor 6-11-2023
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