2023-05-21
Daily Market Monitor 21-05-2023
Tadawul Review:
Tadawul All Share Index (TASI) closed positively on Thursday’s session by 67 points (0.6%) to close at 11,344 levels. TASI opened the session positively, by 17 points from the previous close. TASI continued to rise during the session, reaching its intraday high by 80 points before it partially pared its intraday gains in the closing auction. In general, 17 out of 20 sectors closed in the green zone, while 132 stocks rose and 72 fell. Banks (+1.0%), Energy (+0.9%), and Insurance (+2.0%) sectors contributed the most to the index's rise by 49 points. Stockwise, Saudi National Bank (+2.7%), Aramco (+0.9%), and Alinma Bank (+2.5%) were the major contributors. The trading activity witnessed an increase in volume and value by 6% and 12%, respectively, to reach 217mn shares and SAR6.7bn in value traded. Tadawul is likely to remain range bound as the index consolidate its gains above its 200 Day Moving Average.
The global equity indices were mixed on Friday amid concerns on the US debt ceiling and the pace of economic recovery in China. In the U.S, investors were faced with disappointment over the lack of progress on the U.S debt ceiling. The risk-off trade in the U.S bonds was quite visible as the yields spiked by 1.4-5bps. The equity benchmarks were however relatively less impacted. The S&P 500 and Nasdaq Composite dropped by a marginal 0.1-0.2%. Energy and healthcare provided the major support to the S&P 500 Index. Investors were also concerned by increasing dividend opinion among the U.S Fed officials on the need to further hike interest rate in the upcoming FOMC meeting in June.
In Europe, the Stoxx Europe 600 Index rose by 0.7% on strong performance in tech, industries and financials. Strong Mar-end results have provided a strong footing to the markets in the region to resist the drag from monetary policy and recession related news flow. A key highlight in the region was a new all-time high for DAX in Germany which rose 0.7% on Friday. Other country level indices also moved higher.
In Asia, major markets defied the pull from the China related news flow. Topix in Japan rose by 0.2% on strong corporate results and ultras-loose monetary policy. Tech heavy indices (KOSPI:+ 0.9%, TAIEX:+0.5%) in the region took support from a strong move in semiconductor names. Indices in Hong Kong (Hang Seng:-1.4%) and China (Shanghai Composite:-0.4%) were battered by weak sales numbers by Alibaba for its Mar-end quarter. The last results of Alibaba is yet another data point for investors suggesting the weak pace of economic recovery in China.
Daily Market Monitor 21-05-2023
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