Reports

2023-01-02

Daily Market Monitor 2-1-2023

Tadawul Review:

Tadawul All-Share Index (TASI) closed the first session of the ‎New Year positively, increasing +68 points (+0.7%) to close at ‎‎10,547 levels. TASI started the session positively and ‎continued its ascend until it reached its intraday high in the ‎first half of trading hours with an increase of 87 points. ‎However, TASI cut some of its profits in the last half of ‎trading hours to give up 19 points. In general, 18 out of 20 ‎sectors closed in the green zone, while 175 stocks rose and ‎‎27 fell. Materials (+1%), Banks (+0.2%), and Energy (+0.9%) ‎sectors contributed the most to the index's rise of +32 points. ‎Stock-wise, Aramco (+0.9%), Maaden (+2.9%), and Al Rajhi ‎Bank (+0.4%) contributed most to the rise of the index. The ‎trading activity witnessed a decline in the volume and value ‎of trading by 33% and 38%, respectively, to reach 77mn ‎shares and SAR2.3bn. TASI may look to sustain its recovery in ‎coming sessionss though COVID-19 updates from China ‎remain important for the overall direction of TASI.  ‎

 

 

Market Wrap International:

The global equity indices are likely to see another week of ‎cautious trading amid low liquidity, light economic calendar ‎and reduced number of trading sessions. The pending ‎economic data next week will bring back the focus on the ‎next moves of global central banks and the impact on ‎economic activity of monetary policy decisions, particularly in ‎the latter part of the year. Besides, the COVID-19 from China ‎and expectation of Dec-end result season have also assumed ‎added importance. A-not-so-unexpected decision of banning ‎travelers from China by any major economy may prove to be a ‎negative trigger for the markets.  In the U.S, the economic ‎data on ISM and employment will be released. The latter is ‎particularly important for equity markets and may prove to be ‎market mover next week.‎

A slew of CPI data for the region and member country is due ‎to be released (Germany, France, Euro) and will provide an ‎important insight into future possible monetary policy ‎direction.‎

In Asia, the two big economies, Japan and China, will be the ‎center of attention. The latest monetary policy decision by ‎Bank of Japan (BoJ) of widening of the trading band of yields ‎on 10-yr government bonds has put investors on tenterhooks ‎with regard to similar action in near-term. In China, investors ‎will be focused on authorities’ commitment to announce more ‎easing measures despite the growing number of infection cases ‎in the country. ‎

Daily Market Monitor 2-1-2023