Reports

2023-03-14

Daily Market Monitor 14-03-2023

Tadawul Review:

Tadawul All-Share Index (TASI) fell for the second day in a ‎row on Monday, down -79 points (-0.8%), to close at 10,305 ‎levels. TASI had opened the session positively, up +31 points ‎from the previous close, and continued to rise during the first ‎hour of trading, reaching an intraday high of +79, but soon ‎the index was faced with selling pressure after that, following ‎the decline in Brent oil prices, to complete the rest of the ‎session down and close at an intraday low. In general, 13 out ‎of 20 sectors closed in the red zone, while 65 stocks rose and ‎‎138 fell. Banks (-2%), Telecom (-1.1%), and Materials (-0.2%) ‎sectors were the major drags on the index and contributed a ‎total loss of -79 points. Stocks-wise, Al Rajhi Bank (-1.5%), ‎Saudi National Bank (-2.8%), and Riyad Bank (-2.7%) pulled ‎the index down the most. The trading activity witnessed an ‎increase in volume and value by 26% and 40%, respectively, ‎to reach 169mn shares and SAR4.8bn. TASI will likely move ‎sideways due to the fluctuation in commodity prices and the ‎uncertainty of the global market indices.‎

 

 

Market Wrap International:

The tremors from the collapse of Silicon Valley Bank (SVB) ‎were felt across the globe with equity indices undergoing ‎intense volatility. However, many key indices in Asia buckled ‎the broader trend. The dramatic events included collapse of ‎another bank in the U.S, Signature Bank, rollout of the rescue ‎package, record plunge in the treasury yields with comparison ‎drawn with similar drop on the Black Monday, steep fall in ‎prices of financial stocks and confusion around the Fed’s next ‎policy move. Broadly speaking, the fears of contagion from the ‎collapse of SVB subdued as the session progressed in the U.S ‎and semblance of calmness seemed to have returned. This is ‎also reflected in the movement of the key indices in the U.S, ‎with S&P 500 managing to pare most of its intraday losses to ‎close with minor drop. The tech heavy Nasdaq Composite ‎jumped 0.5%.‎

The epicenter of financial stress shifted to Europe where ‎financial took a battering (down 4.9%).  A number of ‎systemically important banks in the region saw prices collapse.  ‎All listed sectors in the Stoxx Europe 600 Index closed in red ‎with the index losing 2.5% for the session. The country level ‎indices recorded more or less similar losses. ‎

Asian markets appeared to have weathered the storm ‎relatively better with latest announcement in China of ‎retaining most of key members of economic team sent a ‎strong positive signal to investors. The regional indices also ‎benefited from the drop of yields in the U.S as it removed ‎pressure on currencies. HangSeng (+1.9%), Shanghai ‎Composite (+1.2%), Kospi (+0.7%), TAIEX(+0.2%)  closed ‎higher. Indices in Japan (Topix:1.5%) and India (Sensex:1.‎‏5‏‎%) ‎were under pressure. ‎

Daily Market Monitor 14-03-2023