Reports

2023-01-30

Daily Market Monitor 30-01-2023

Tadawul Review:

Tadawul All-Share Index (TASI) ended Sunday's session ‎higher for the seventh consecutive session and added +18 ‎points (+0.2%) to close at 10,839, its highest level since the ‎beginning of the year. TASI opened the session positively, up ‎by +34 points from the previous close. TASI maintained its ‎opening level as it continued in the first period of trading ‎hours in the same range as it recorded its intraday high, ‎which is 37 points, but TASI began to gradually decline after ‎that to reach its intraday low, down by -12 points, before ‎TASI regained its track in the last hour of trading, turning the ‎index green. In the closing auction, TASI was able to add +13 ‎points to enhance its daily profits. In general, 11 sectors out ‎of 20 closed in the green zone, while 104 stocks rose and 101 ‎fell. Banks (+0.7%), Real Estate (+1.4%), and Insurance ‎‎(+1.5%) sectors led the index gains, while Materials (-0.7%), ‎Utilities (-2%), and Health care (-0.7%) were the major drags ‎on the index. Among stocks, Al Rajhi Bank (+1.6%), Aramco ‎‎(+0.3%), and Dar Al Arkan (+5%) contributed most to the rise ‎of the index. The trading activity witnessed a decline in the ‎volume and value of trading by 7% and 13%, respectively, to ‎reach 117mn shares and SAR3.2bn.‎

 

 

 

Market Wrap International:

The next week will bring important policy decisions by global ‎central banks for the markets which may set the tone for the ‎future market direction. Alongside rate decisions, investors will ‎also focus on Dec-end result season and the important ‎economic data, particularly in Asia. In the U.S, Fed is to ‎announce its policy decision later this week where the ‎consensus expectations are tilted towards a 25bps hike. In an ‎event FOMC decides to maintain the current pace of rate ‎hike, markets may exhibit negative reactions.‎

In Europe, both ECB and BOE are due to announce rate ‎decisions where odds of 50bps revision by both the central ‎banks are high. The GDP data in the major regional ‎economies, due early next week, will likely draw attention ‎from investors as weak data may build up pressure on the ‎central banks to adopt more gradualism in rate hike decisions.‎

 

In Asia, China, Japan and India will be in the limelight for ‎different reasons. In China, investors will closely track the data ‎on economic activity (PMI, travel, retail sales), particularly in ‎the wake of easing of COVID-19 restrictions. In Japan, data on ‎labor market and economic activity will be eyed. In India, the ‎annual budget announcement is due next week which, like in ‎the past, may prove to be a major market event. ‎‎

 

Daily Market Monitor 30-01-2023