Reports

2022-10-10

Daily Market Monitor 10-10-2022

Tadawul Review:

Tadawul All Share Index (TASI) faced a major downside ‎volatility on the first trading session of the week and dropped ‎by 191 points (-1.63%) to close at 11,566 levels. Sunday's ‎session was affected by the volatility and decline of global ‎markets over the weekend and stoked by fears of aggressive ‎increase in interest rate. The index started the session on the ‎muted note, and started to gradually decline. In general, all ‎‎20 sectors closed in the red while all stocks declined, except ‎for 8 that rose. The decline was led by the Banks sector (-‎‎1.6%), followed by Materials (-2%), and Food & Beverages ‎‎(3.6%). Altogether, the aforementioned sectors contributed to ‎the decline of the index by 117 points. Amongst stocks, Al ‎Rajhi Bank (-2.1%), Banque Saudi Fransi (-4%), and Maaden ‎Company (-3.3%) stocks pulled the index down the most. ‎Trading activity also witnessed a decrease in the volume and ‎value of trading of -15% and -22%, respectively, to reach ‎‎115mn shares and SAR3.8bn. The index may take a cue from ‎early morning trading. Overall, the index is likely to move ‎sideways at current levels.  ‎

 

 

Market Wrap International:

The global equity markets are set to enter a crucial period with many ‎important monetary policy decisions and data points due next week. The ‎result season for Sep-end will also kickstart. All eyes will be on the ‎minutes of the FOMC meeting (due on Wed) and the release of CPI data ‎in the U.S (due on Thursday).  Consumer Confidence Index (preliminary ‎reading) and retail sales data will also be published this week. The data ‎may reinforce the market view of “higher for longer” interest rate.‎

In Europe, important data points include GDP growth data, ‎unemployment and in the U.K and   Industrial production data in Euro ‎region. The central bank officials for both ECB and U.K are also due to ‎speak next week. The data points in the region, along with the outlook ‎on the Fed’s action, will determine the path of ECB’s next rate hike ‎decision in Oct-22(current consensus expectations are for 75bps hike).‎

In Asia, investors will likely respond to heightened volatility and the rise ‎of yields in the U.S over the weekend. Chinese markets will resume ‎trading next week following a week-long suspension. CPI data in China, ‎PoBC decision on one-year interest rate, trade data are some of the ‎important event/data points in China due next week. Current Account ‎and PPI data are due in Japan. Focus next week will likely remain on the ‎currency and bond yields in the region.    ‎

Daily Market Monitor 10-10-2022