Reports

2023-08-03

Daily Market Monitor 3-08-2023

Tadawul Review:

Tadawul All Share Index (TASI) fell for the fifth day on ‎Wednesday session by -158 points (-1.4%) to close at 11,478 ‎levels. TASI opened the session negatively by -26 points from ‎the previous close and continued to decline throughout the ‎session to close at its intraday low. In general, 17 out of 20 ‎sectors closed in the red zone, while 135 of 223 shares fell ‎and 75 rose. Banks (-2.3%), Food and beverages (-3.2%), and ‎Materials (-1.3%) sectors contributed the most to the index's ‎‎-112-point fall. Stockwise, Al Rajhi Bank (-2.6%), Al Rajhi ‎Bank (-5.3%), and Saudi Awwal Bank (-3.7%) were the major ‎contributors. The trading activity witnessed a decline in ‎volume by -4% to reach 205, and the value remained ‎unchanged at SAR5.4bn value traded.‎

 

 

Market Wrap International:

The jitters from the rating downgrade of the U.S sovereign ‎bond by Fitch last night felt across the financial markets and ‎asset classes on Wednesday. The latest economic data in the ‎US also failed to lend any help. The equity benchmarks in all ‎three regions closed with losses. Commodity prices dropped, ‎currency while USD lost value against major currencies. The ‎bond yields in the U.S rose with 10-year bond crossing over 4% ‎mark. The equity benchmarks in the U.S were down by 1-‎‎1.4%. The tech heavy Nasdaq Composite was down 2.2% as ‎growth stocks came in relatively higher pressure. All but two ‎sectors on the S&P 500 Index closed with losses, dragged by ‎tech and communication.‎

In Europe, the Stoxx Europe 600 Index fell by 1.4% on risk-off ‎trade. The investors were concerned the rating downgrade in ‎the U.S may have increased the risk of similar actions for ‎countries with high debt burden and low GDP growth outlook. ‎The country level indices were also down in the range of 1.3-‎‎1.4%.‎

In Asia, the update on rating downgrade coincided with ‎broader tech sell-off in the region on earnings disappointment ‎and profit taking. The major indices in the region were down ‎in the range of 0.9-1.9%. Hang Seng (-2.5%) and Nikkei 225 (-‎‎2.3%) were the major underperformers on respectively sell-off ‎in tech names and concerns associated with current monetary ‎stance in the backdrop of latest update.‎

Daily Market Monitor 3-08-2023