Reports

2022-10-19

Daily Market Monitor 19-10-2022

Tadawul Review:

Tadawul All Share Index (TASI) closed positively for the second ‎consecutive session on Tuesday, rising +244 (+2.1%) to the ‎‎11,810 level, gaining 404 points over the previous two trading ‎days. TASI opened the session positively, with a difference gain of ‎‎+58 points, and continued to trade positively throughout the ‎trading period to close  with a gain of +193 points in regular ‎trading hours. In the closing auction, TASI added another 51 ‎points to cross the 11,800 level, recording the highest level in a ‎month. In general, all sectors closed in the green except for the ‎Pharma, Biotech & Life Science sector, while the advance-to-‎decline stock ratio came in at 4:1. Banks (+3.3%), Materials ‎‎(+1.4%), and Energy (+1.1%), the three heavyweight sectors for ‎TASI, provided the push (cumulative contribution: 175 points). ‎Stock-wise, Al Rajhi Bank (+2.7%) and Saudi National Bank ‎‎(+4.2%) led the charge, followed by Aramco (+1.1%). Trading ‎activity was completed to witness a remarkable improvement in ‎the volume and value of trading by 33% and 34%, respectively, ‎to reach 148mn shares and SAR5.9bn. Banks were the major ‎drivers of TASI on Tuesday on general optimism over Sep-end ‎results. That said, weakness in oil prices will likely test the ‎strength of market’s latest moves and may add to intraday ‎volatility. ‎‎

 

 

Market Wrap International:

The global equity indices sustained the recovery into the ‎second straight session. The easing in treasury yields and no ‎major economic data release allowed the optimism on ‎earnings season to completely manifest across regions. In the ‎U.S, the benchmark indices grinded higher by 0.9-1.1%, ‎translating into two-day gains of 3%-4.4%. Major results lifted ‎the sentiments with 11 industrial groups in the S&P 500 Index ‎closing higher.‎

In Europe, the relief rally from the reversal of the U.K fiscal ‎largesse continued into the third session. The confusion over ‎possible delay in the QT (Quantitative Tightening) in the U.K ‎also prevailed for most of the session before authorities ‎refuted such plans.  Yields in U.K bonds further retreated ‎though Pound moved down marginally. The benchmark Stoxx ‎Euro 600 Index jumped 0.3% at session close, mirroring the ‎move in the regional markets.‎

In Asia, the two underperformers of the last session in the ‎region (Japan, Taiwan) joined the market recovery theme and ‎were up 1.2% and 1.4% respectively. Other notable moves ‎include Korea (Kospi:+1.4%), and Hong Kong (HangSeng: ‎‎+1.8%). Shanghai Composite (-0.1%) in China was the only ‎laggard in the region with the delay in the release of 3Q22 ‎economic data in the limelight.   ‎

Daily Market Monitor 19-10-2022