2023-09-20
Daily Market Monitor 20-09-2023
Tadawul Review:
Tadawul All Share Index (TASI) rose on Tuesday by +35 points (+0.3%) to close at 11,071 levels. TASI opened the session on a negative note of -7 points and continued to drop, reaching its intraday low by -44 points from the previous close. However, the index then started to rise while facing some fluctuation until the end of the session. In general, 13 out of 20 sectors closed in the green zone, while 115 of 223 shares rose and 91 fell. Materials (+0.8%), Telecom (+1.1%), and Energy (+0.3%) sectors contributed the most to the index rise. Stockwise, Maaden (+4.9%), Alinma Bank (+1.9%), and Aramco (+0.3%) were the major contributors. The trading activity witnessed a decrease in volume of -9% to reach 186 million shares, while the value increased by +4% to reach SAR 5.9 billion in value traded.
On the eve of the Federal Reserve's decision, stock prices declined and bond yields increased, fueled by the belief that elevated oil prices may lead to an extended period of higher interest rates in order to mitigate any potential surge in inflation. The S&P 500 dropped by -0.2%, with nine out of eleven listed sectors dropping, and the Nasdaq Composite was down by -0.3%, with investors keeping a close eye on the auto sector strikes. US five- and 10-year yields rose to the highest levels since 2007 after hotter-than-anticipated inflation data in Canada and rising oil prices.
In Europe, equities recorded a marginal decrease as the benchmark Brent crude oil price breached the $95 per barrel mark, marking its highest level since November. The Stoxx Europe 600 closed on a slight negative note by -0.04%, while FTSE 100 index closed up by +0.1%. The country-level indices closed within a range of -0.4% to +0.1%.
In Asia, the stock markets experienced a slight decline as investors anxiously awaited the decisions of the central bank. The upward pressure on inflation due to higher oil prices is keeping the door open for hawkish messages. In Chinese indices, Hang Seng closed positively by +0.4% as investors assessed the recent positive signs in economic data and property sector woes, while Shanghai Composite remained without change. The Japanese benchmark TOPIX was up by +0.1%, while NIKKEI 225 ended negatively by 0.9%. The other major indices were negative within a range of -0.6 to -0.4.
Daily Market Monitor 20-09-2023
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