Reports

2022-10-06

Daily Market Monitor 6-10-2022

Tadawul Review:

Tadawul All Share Index (TASI) remained choppy on ‎Wednesday and managed to close little changed decreasing ‎by just 10 points (-0.1%). The index ended its ‎‏6‏‎ day winning ‎streak and closed at the 11,770 level. TASI opened positive ‎‎(+83 points) and maintained its momentum to make an ‎intraday high of 100 points. TASI began a gradual decline ‎until the closing auction. Then the index minimised some of ‎its losses and rose at the closing auction by 10 points. In ‎general, 13 out of 20 sectors closed in the green zone, while ‎‏60‏‎ stocks rose and 148 fell. Real Estates (-1.3%), Telecom (-‎‎0.7%), and Utilities (-0.9%) sectors were the major drags on ‎the index. Stocks-wise, SABIC (+1.4%), Al-Rajhi Bank (+0.4%), ‎and Almarai Company (+3.3%) contributed the most to the ‎index. The trading activity witnessed a decline of 5% and 2%, ‎respectively, to reach 186mn shares and SAR6.8 bn.‎‏ ‏The ‎index may seek to consolidate its recent gains ahead of the ‎start of result season. ‎‎

 

 

Market Wrap International:

The global equity markets underwent a choppy session amid ‎investors’ nervousness over the path of Fed Fund Rate and ‎inflation. Energy prices also pivot higher on a surprise deep cut ‎in oil production and lifted energy stocks across regions. The ‎latest strong economic data in the U.S (service provider, ‎hiring) worked to water down expectations of the relatively ‎dovish Fed. The treasury yields moved higher with yields on the ‎U.S 10-year and 2-year bonds climbing by ‎‏12‏‎ bps and 7 bps. In ‎the U.S, the benchmark indices opened negative and dropped ‎sharply to mark intraday lows of 1.4-1.8% before paring most ‎of the losses to close with minor change (S&P500: -0.2%, ‎Nasdaq Composite:-0.2%).‎

In Europe, the benchmark Stoxx Euro 600 Index snapped ‎three-day rally and recorded a drop of 1%. Auto, retail and ‎real estate came for battering while energy names ‎outperformed. The broader macro concerns associated with ‎major economies in the region (recession and energy shortage) ‎have overshadowed market valuation as investors weighed the ‎next Fed move.‎

In Asia, markets were driven higher for the second straight ‎session with Hang Seng in Hong Kong (+5.9%) making ‎headlines. Investors in Hong Kong digested recent market ‎moves after the market close for national holidays. Equity ‎indices in Japan (Topix: +0.3%), Korea (KOSPI:+0.3%) and ‎Taiwan (TAIEX:+1.7%) also closed positive. Markets in ‎India  and China were closed for national holidays

Daily Market Monitor 6-10-2022