Reports

2023-03-06

Daily Market Monitor 6-03-2023

Tadawul Review:

Tadawul All-Share Index (TASI) closed positively for the ‎fourth day in a row on Sunday, rising +134 (+1.3%) to close at ‎‎10,411 levels. TASI index opened the session positively, up 68 ‎points from the previous close, due to the rises in Brent oil ‎prices and the major global markets. TASI completed its ‎positive momentum since the beginning of the session to ‎continue its rise and end the session at its intraday high in the ‎closing auction. In general, 18 out of 20 sectors closed in the ‎green zone, while 160 stocks rose and 44 fell. Banks sector ‎contributed the most to the index's rise (+2%), followed by ‎Materials (+1.5%) and Energy (+0.7%), as they contributed to ‎the index's rise with a total of 99 points. Stock-wise, Al Rajhi ‎Bank (+1.9%), Aramco (+0.8%), and Saudi National Bank ‎‎(+1.6%) contributed most to the rise of the index. The ‎trading activity witnessed a decline in the volume and value ‎of trading by 33% and 35%, respectively, to reach 114mn ‎shares and SAR3.3bn.‎

 

 

 

Market Wrap International:

The global equity markets are coming to terms with the new ‎economic data and Fed Speak in the U.S as shown in the ‎revision in the expectation of peak rate and the expected ‎timeline for the pivot. The broader price action whereby the ‎gains in the later part of the week made up for the downside ‎volatility in the initial sessions further reaffirmed it. Next week ‎is unlikely to be any different with a divided consensus opinion. ‎In the U.S, the key event appears to be the congressional ‎hearing of the Fed Chair (bi annual meeting on monetary ‎policy) and President’s Budget proposal (budget priorities for ‎‎2023 including proposal for higher taxes). Labor market data ‎‎(JOLT, nonfarm payroll) is another important area for the ‎market to track.‎

In Europe, investors' focus is going to be on the growth data in ‎the U.K (monthly GDP for Jan-23) and Germany (Industrial ‎production, likely to show rebound in Jan-23 post drop in Dec-‎‎22). Investors will also keep an eye on statements from ECB ‎officials on the future direction of interest following not-so-‎convincing CPI print for the Eurozone last week.‎

 

In Asia, the key highlights of the National People’s Congress ‎hurdle over the weekend, including possible new economic ‎measures, and Bank of Japan’s (BoJ) monetary policy meeting ‎are the two important triggers for the market. Investors ‎broadly expect Chinese authorities to announce fresh ‎measures to accelerate economic recovery and the BoJ to stay ‎put on its ultra-loose monetary policy. Any negative surprises ‎may lead to negative reaction in the market.‎

 

 

Daily Market Monitor 6-03-2023