Reports

2022-09-26

Daily Market Monitor 26-09-2022

 

Tadawul Review:

Tadawul All Share Index (TASI) declined for the ‎second consecutive session and dropped by 300 points (-2.61%, the ‎biggest daily decline since 22nd June’ 22) to close at 11,161 ‎levels. The volatility in global markets and the decline in oil ‎prices were the main reasons for the drop in TASI. TASI ‎started the proceedings on a negative note on Sunday and gradually ‎declined to its intraday low of 340 points before reducing ‎some of its losses. The decline was broad-based as all sectors ‎closed in the red, while only 10 stocks managed to achieve ‎positive closing. The drop was led by the Banks (-2.8%), ‎followed by Materials (-2.6%) and Energy (-2.7%) sectors. ‎Index heavyweights, namely Al-Rajhi Bank (-3.3%), Aramco (-‎‎2.6%), Saudi Alahli Bank (- 1.7%), pulled the index down the ‎most. Trading activity witnessed an increase in trading ‎volume and value by -9% and -4%, respectively, to reach 128 ‎million shares and 4 billion Saudi riyals. TASI is expected to ‎absorb the shock of the Fed's statements and the impact of ‎the major global markets in the upcoming sessions and may ‎continue in same direction.‎‎

 

 

 

Market Wrap International:

Following a chaotic last week, an uneasy trading period awaits ‎investors. The major global indices declined by 4%-6) last week to ‎settle either below bear territory or fresh YTD lows. On the ‎monetary policy front, there are not many events scheduled ‎for next week. The Fed, BoJ, & BOE have reviewed policy ‎rates last week and ECB is due to hold its meeting in late Oct. ‎In the interim, the market will start looking for clues to gauge ‎the extent of economic slow-down, currency depreciation and ‎earnings reports for Sep-end quarter. In the U.S, the data for ‎next week is centered on housing prices and consumer ‎sentiments. The shift in the treasury yield curve last week has ‎already increased the risk of deeper recession in the U.S. ‎Markets may see further downside volatility in near-term ‎given negative momentum and lack of any positive trigger.‎

In Europe, both Euro (since 2002) and Pound Sterling (since ‎‎1985) are trading at historic lows as investors believe the ‎response of central banks to rein in inflation is inadequate. ‎Currency and key indicators for economic growth will likely ‎remain major focus areas in near-term as the region brace up ‎for the energy supply shortages in the winter season. The ‎likely negative news flow can put prices further under pressure.‎

In Asia, indices will likely absorb the full impact of price action ‎in the U.S on Friday. Important economic data release includes ‎PMI data in China, labour market and Industrial production ‎data in Japan. India’s central bank will also announce the ‎policy rate next week. Overall, investors will look for any ‎signs of market bottom. Valuations for many markets provide ‎a major comfort to investors at a time of heightened ‎volatility.   ‎‎

 

 

 

 

 

Daily Market Monitor 26-09-2022