Reports

2022-11-28

Daily Market Monitor 28-11-2022

Tadawul Review:

Tadawul All-Share Index (TASI) declined on Sunday for the second ‎day in a row by -142 points (-1.3%) to break the 10,800 barrier and ‎record its lowest close since December 1, 2021 (10,850) and settled ‎at 10,796 levels. TASI opened the session at the same level as the ‎previous closing, but it quickly retreated and continued its decline ‎until the last normal trading hour, to record its lowest level during ‎the day, down by -194 points. TASI managed to reduce some of its ‎losses and added +66 points at the end of the last hour of normal ‎trading. In general, all sectors declined except for the healthcare ‎sector, while 33 shares rose and 173 declined. Banks (-1.7%), ‎Materials (-1.4%), and Food and Beverage (-3%) sectors were the ‎major drags on the index and contributed a total of -100 points. ‎Stocks-wise, Al Rajhi Bank (-1.2%), Saudi British Bank (-4.1%), and ‎Bank AlBilad (-3.7%) pulled the index down the most. The trading ‎activity also witnessed a significant decline in the volume and ‎value of trading by -48% and -58%, respectively, to reach 75mn ‎shares and SAR2.6bn (lowest trading value since 18/02/2020). TASI ‎has dropped over 21% from its peak seen in May-22 to set a new ‎low from its peak. Technical indicators (RSI, SO) show oversold ‎signals. The index is likely to stabilize around the 11K mark. ‎

 

 

Market Wrap International:

The global equity markets will likely enter a more data-driven period ahead with major data due in the U.S next week ‎and China COVID-19 which may substantiate market’s optimism and/or fears. That said, a strong performance across ‎the U.S and Europe and select indices in Asia last week may weigh on markets’ direction. Fresh positive triggers ‎remain important to drive up further returns. In the U.S, the major economic data include updates on labor market, ‎housing and inflation (Personal Consumption Expenditure). In addition, investors will also closely track sales ‎estimates for both Black Friday and Cyber Monday to assess the strength of retail purchases despite inflation.‎

In Europe, the drop in commodity prices and the relative stability in currencies have taken the pressure off from ‎central banks to adopt a more aggressive policy stance in its mid-month briefing. Key country level indices have ‎strongly bounced back from respective lows and are flirting with bull-market territory. Strong performance may hinder ‎markets to deliver meaningful returns.‎

In Asia, all eyes are once again on China to find out authorities’ response to the latest COVID-19 surge in different ‎parts of the country. A cost of economic data (GDP in Thailand, India, Retail sales and PMI data) is also due to be ‎released for the next week which will provide important insights in the health of the region. Like Europe, the recent ‎drop in commodity prices along with relative currency stability and valuation provides an encouraging backdrop for ‎further performance of regional markets. ‎‎

 

Daily Market Monitor 28-11-2022