Reports

2023-04-16

Daily Market Monitor 16-04-2023

Tadawul Review:

Tadawul All-Share Index (TASI) closed thursday’s session up ‎for the second day in a row by +29 points (+0.3%) to close at ‎‎10,965 levels, TASI opened the session positively up by ‎‎+7 ‎points from the previous close ,and it continued rising for ‎the most of the session to mark intraday high of 55 before ‎partially paring gains in the closing auction. In general, 15 out ‎of 20 sectors closed in the green zone, while 124 ‎stocks rose ‎and 81 fell. Materials (+1.1%), Energy (+0.4%), and Health ‎Care (+1.1%) sectors contributed the most to the index's rise ‎of +25 points. Stock-wise, AlRajhi Bank (+0.5%), Aramco ‎‎(+0.5%), and Maaden (+2.4%) contributed most to the rise ‎of ‎the index. The trading activity witnessed an increase in ‎volume and value by +7% and 11% respectively, to reach ‎‎165mn shares and SAR5.2bn. The index is likely to ‎consolidate below the 11k mark. The upcoming result season ‎may provide a push to the index to break through the ‎resistance levels. ‎‎

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Market Wrap International:

The global equity indices moved higher on Friday amid a slew ‎of positive earnings announcement and weak economic data ‎raising optimism over an early end to interest rate hikes. In ‎the U.S, the strong results in banks offset concerns on ‎economic slowdown. The key equity gauges in the U.S gave up ‎initial gains to close with minor losses. Financials (+1%) diluted ‎the drag from real estate (-1.7%) and Utilities (-1%). The ‎treasury yields in the U.S remained volatile and closed with 7-‎‎13bps increase. Retails sales came in weaker than expected ‎and along with other data points released last week (PPI, ‎labor market) substantiated the market view of cooling off ‎economic activity.‎

In Europe, the benchmark Stoxx Europe 600 Index rose 0.6% ‎to its highest level since 2021. All sectors barring two closed ‎higher led by financial and utilities. Country level indices moved ‎in the same direction and were up 0.4-0.5%. While most ECB ‎officials have hinted at the possibility of another 50bps hike in ‎interest rate in the region, the views on the need for sustaining ‎such hikes beyond the upcoming policy meeting is quite ‎divided.‎

 

In Asia, the focus is shifting away from the interest rate hikes ‎to the upcoming result seasons. Low valuation, recent ‎performance of key gauges and positive economic data in ‎China have also supported investors’ interest. The key equity ‎markets were up 0.4-1.2% on Friday with tech and financials ‎leading the key indices. ‎

 

 

 

Daily Market Monitor 16-04-2023