Reports

2023-03-23

Daily Market Monitor 23-03-2023

Tadawul Review:

Tadawul All-Share Index (TASI) ended its three-day streak of ‎gains, on Wednesday and closed at 10,351 levels, down -9 ‎points (-0.1%). TASI opened the session negatively, down -7 ‎points from the previous close. The index fluctuated between ‎gains and losses with a range of 88 points. In general, 9 out of ‎‎20 sectors closed in the red zone, while 97 stocks rose and ‎‎108 fell. Energy (+0.5%), Telecom (+0.8%), and Health care ‎‎(+1.3%) sectors contributed to the stability of the index, ‎while Banks (-0.7%), Materials (-0.3%), and Real Estate (-‎‎0.7%) were a drag on the index. Among stocks, SABIC (-‎‎1.2%), Alinma Bank (-1.2%), and Sulaiman Al Habib (-1.9%) ‎pulled the index down the most. The trading volume activity ‎declined by 2% DoD to reach 154mn shares, while the trading ‎value increased by 1% DoD to reach SAR5bn. TASI is likely to ‎remain volatile in near-term driven by international markets. ‎

 

 

Market Wrap International:

The global equity markets were shaken by a slew of ‎disappointments on Wednesday. The surprise increase in the ‎CPI in U.K was followed by the U.S Treasury Secretary’s ‎comments on deposit protection. At the same time, the Fed ‎delivered ninth straight hike in interest to bring Fed Fund Rate ‎to 4.75-5%. More importantly, the Fed leave the room for ‎more such hikes in future besides guiding for no pivot for 2023. ‎The treasury market , however, believed otherwise and ‎confronted the Fed comments with 18-23bps drop in yields ‎over 2 to 10 years’ tenures. The equity markets made a sharp ‎course change on the latest updates with S&P 500 Index ‎paring intraday gains of ‎‏2.6‏‎% to close with 1.6% loss. Nasdaq ‎Composite too behaved in the similar fashion and was down ‎‎1.6% at session end.‎

In Europe, the investors were cautious ahead of Fed ‎announcement later in the evening. The surprise increase in ‎U.K CPI have had a little impact on the markets. The Stoxx ‎Europe 600 Index closed with 0.2% gains as consumers names ‎supported the move.‎

In Asia, stocks reacted to general improvement in sentiment ‎towards banking stocks in response to newsflow over new ‎support measures for banks in the U. Banking stocks were in ‎the lead along with tech names. All major markets made a ‎strong move and were up 0.2% | 1.9%‎

Daily Market Monitor 23-03-2023