Reports

2022-10-25

Daily Market Monitor 25-10-2022

Tadawul Review:

Tadawul All Share Index (TASI) extended the gains for the third ‎consecutive day to add 69 points (+0.6%) to close at 12,075 ‎levels, the highest since mid of last month. TASI made a nervous ‎start to the session and traded in negative territory in the first ‎two hours below the 12,000 level. The index started building its ‎positive momentum after that and continued rising to close at its ‎intraday high level. Overall, 10 of the 20 sectors closed in the ‎green, while the stocks' advance to decline ratio was at 0.8:1. ‎Banks (+0.8%), Utilities (+3.6%), and Food and beverages ‎‎(+1.3%) provided the push to the index rise (cumulative ‎contribution: 52 points). Stock-wise, ACWA Power (+4.3%) led ‎the charge, followed by Saudi British Bank (+4.2%) and Al Rajhi ‎Bank (+0.7%). Trading activity witnessed a remarkable ‎improvement in the volume and value of trading by 14% and ‎‎26%, respectively, to reach 148mn shares and SAR6.6bn. TASI is ‎likely to move in a close range in near-term and consolidate ‎above the 12k mark. ‎

 

 

 

Market Wrap International:

The global equity indices broadly moved higher on Monday on ‎a confluence optimism on earnings seasons, clarity on future ‎leadership in the U.K and macro data. In the U.S, the ‎benchmark indices sustained the positive momentum for the ‎second straight session as investors took a fresh view of likely ‎policy rate changes beyond the upcoming FOMC decision in ‎Nov-22. The yields on U.S treasury moved around previous ‎levels but managed to close down ‎‏24‏bps at session close. The ‎big tech U.S stocks are slated to report results this week and ‎may have a big bearing on the market direction in the near-‎term.‎

In Europe, the emergence of the former Chancellor of ‎Exchequer as a clear majority leader for the post of PM in the ‎U.K made a dramatic impact on the bond yields. 10-year yields ‎on U.K bonds dropped by ‎‏691‏bps to ‎‏375‏bps with investors ‎taking a bet the new PM would make swift policy changes to ‎address investors concerns on inflation, growth and fiscal ‎policy. The drop in gas prices in the region also gained ‎traction. Overall, FTSE-100 Index jumped ‎‏0.6‏‎% at session close ‎with the benchmark Stoxx Euro 600 Index managed to close ‎with ‎‏1.6‏‎% gain.‎

 

In Asia, markets moved in divergent directions. HangSeng (-‎‏6.4‏‎%) in Hong Kong and Shanghai Composite (-‎‏2‏‎%) China ‎were the major drags in the region as investors responded to ‎the announcement of a new leadership team in China and ‎likely no relief on current zero-COVID policy. Elsewhere, ‎Nikkei 225 in Japan was up 0.3% despite apparent ‎nervousness on latest moves in Japanese Yen vs USD. Indices ‎in Korea (KOSPI:+1%) and Taiwan (TAIEX:+0.3%) also moved ‎higher. Market in India was closed for trading on Monday.‎

 

Daily Market Monitor 25-10-2022