Reports

2023-07-17

Daily Market Monitor 17-07-2023

Tadawul Review:  

Tadawul All Share Index (TASI) closed with ‎minor gains on Sunday's session by +8 points (+0.1%) to ‎close at 11,716 levels. TASI opened the session on a positive ‎note by 25 points and reached its intraday high in the first ‎trading hour. However, TASI continued fluctuating around its ‎previous close throughout the rest of the session. In general, ‎‎12 out of 20 sectors closed in the green zone, while 93 stocks ‎rose and 121 fell. Health care equipment and services ‎‎(+1.4%), Utilities (+1.2%), and Real Estate (+0.8%) sectors ‎contributed the most to the index's +12 point rise. Stockwise, ‎Riyad Bank (+3.1%), ACWA Power (+2.0%), and Saudi Fransi ‎‎(+1.9%) were the major contributors. The trading activity ‎witnessed a decline in volume and value of -33% and -12%, ‎respectively, to reach 275mn shares and SAR6.8bn in value ‎traded.‎

 

 

 

Market Wrap International:

The global equity markets enter a happening period for the ‎next few sessions, with the result season getting into full swing ‎and the impending Fed’s decision on policy rate due early next ‎week. All in all, secondary market pricing of bonds indicates a ‎‎25bp hike in rate may not be surprising for the market. Next ‎week’s economic data (labor market, housing) in the U.S. will ‎be closely monitored given the ongoing debate on a soft ‎landing vs recession in the U.S.‎

In Europe, the focus on inflation and growth both for the Euro ‎region and the U.K will be intensified with the release of CPI ‎data for both. Investors will closely monitor the data for a ‎possible backdrop for the continuation of the jumbo rate hike ‎in U.K and the peak rate in the Euro region.‎

 

In Asia, investors currently have divergent monetary policy ‎expectations for the two major economies in the region. The ‎growing noise about possible disruptions in the current Bank of ‎Japan’s ultra loose policy and fresh policy support measures ‎may prove to be a source of volatility in the markets. In terms ‎of data point, inflation data for both countries is due next ‎week and will likely show moderation I inflation pressure.‎

 

Daily Market Monitor 17-07-2023