Reports

2022-08-30

Daily Market Monitor 30-08-2022

 

Tadawul Review:

Tadawul All Share Index (TASI) remained unchanged (+0.04% ‎to close at the level of 12,531) following another ange-bound ‎session on Monday,. The index struggled to break free from ‎the downside volatility seen in international markets and ‎reached its highest level with a rise of 63 points. However, ‎the index soon ran out of steam and fell to its intraday low of ‎‎-18points before paring losses at season's end. In general, 17 ‎out of 20 sectors closed in green, 144 stocks rose, and 56 ‎stocks fell. Energy (-0.6%) and Telecom (-1%) sectors were ‎the major drags on the index. Stocks-wise, Al-Rajhi Bank ‎‎(+0.4%), Alinma Bank (+1.5%), and SABIC Agri-Nutrients ‎Company (+2.3%) contributed most to the stability and rise ‎of the index. The top gainers for the session were the ‎National Gas and Industrialization Company (+7.1%) and the ‎Tourism Enterprises Company (+6.7%). The trading activity ‎witnessed a remarkable improvement in the volume and ‎value of trading by +18% and +20% to reach 162mn shares ‎and SAR6.9bn. TASI is likely to maintain its consolidation ‎phase in the near-term.‎

 

 

 

Market Wrap International:

The aftershocks of the Fed's latest guidance of “higher for ‎longer interest rates” last Friday continued to be felt across all ‎major markets with all major indices, saved with a few in ‎China, sustaining another session of losses. Multiple records in ‎the bond (US-2Yr bond at highest since GFC), currency ‎‎(Sterling, Yuan recording multi-year low) and equity indices ‎were broken. Overall, investors looked for risk-off trades and ‎accordingly ran for cover (USD Index jumped close to all-time ‎levels). Inflation and upcoming central banks’ decisions remain ‎front and center of investors' focus. In the U.S, the benchmark ‎indices declined by another ‎‏1‏‎-‎‏0.6‏‎% following a significant ‎decline on Friday. All major sector indices but one (energy) ‎were in red in S&P 500 Index. ‎

In Europe, possibility of a jumbo rate hike in the upcoming ‎ECB meeting has increased though the relief from a significant ‎drop in gas prices in the region (over ‎‏13‏‎%) and Euro gaining ‎parity against USD (+‎‏0.3‏‎%DoD) provided major support to ‎investors. The benchmark Stoxx Euro 600 Index dropped by ‎‏0.8% on Monday, adding on the losses of ‎‏1.7‏‎% on Friday.‎

In Asia, the indices suffered from the latest risk-off mode ‎among investors with markets incorporating the latest Fed ‎guidance and risk of further currency volatility among EM ‎markets. Tech and financials led the sell-off and dragged the ‎regional benchmark, MSCI Asia Pacific Index to two years low. ‎The major indices changed course on Monday and dropped by ‎‏0.7‏‎-‎‏2.7‏‎%. China’s Shanghai Composite was the only major ‎equity index which managed to hold onto its ground.  ‎

Daily Market Monitor 30-08-2022