Reports

2022-10-09

Daily Market Monitor 9-10-2022

Tadawul Review:

Tadawul All Share Index (TASI) remained choppy in ‎Thursday's session and managed to close with little change, ‎decreasing by just 13 points (-0.1%) to stay at 11,758 levels. ‎Despite losses in the last two sessions, TASI has managed to ‎add 352 points (+3.1% WoW) during the 1st week of ‎October. TASI underwent an initial nervous trading period in ‎the first hour of the session after a modest positive opening. ‎However, the index started its gradual rise to compensate ‎for its losses and gained 77 points from its intraday low. TASI ‎began a gradual decline in late hours trading, until the closing ‎auction. In the closing auction trade, the index made a ‎decline of 32 points. In general, 10 out of 20 sectors closed in ‎the green zone, while 88 stocks rose and 114 fell. Banks (-‎‎0.6%), Real Estates (-1.4%), and Telecom (-0.4%) sectors ‎were the major drags on the index. Stocks-wise, SABIC ‎‎(+2.5%), Sipchem (+3.8%), and Riyad Bank (+1.3%) ‎contributed the most to the stability of the index. The trading ‎activity witnessed a decline of 27% and 28%, respectively, to ‎reach 135mn shares and SAR4.9bn. TASI may continue to ‎consolidate its recent gains given volatility in international ‎markets though significant gains in oil prices over the ‎weekend remain a key positive. ‎

 

 

Market Wrap International:

The global equity indices showed a synchronous move on ‎Friday and pared most of weekly gains as more economic data ‎‎(new payrolls) pointed no-let up in Fed’s current hawkish ‎stance. The Fed Speak also reinforced the market's view that ‎the Fed may not make any pivot to easing anytime soon. The ‎US treasury yields advanced with yields on both 2-year and ‎‎10-year bonds hovering close to recent highs. Commodity ‎prices also spiked as oil further surged by 3.7% on Friday ‎following announcement of production cut by OPEC+ alliance. ‎In the U.S, the S&P 500 and Nasdaq Composite dropped by ‎‎2.8% and 3.8%. All 11 listed sectors in the S&P 500 index ‎recorded losses.  ‎

In Europe, the equity markets took a cue from the latest data ‎in the U.S. The concerns on energy supply and economic ‎recession also weigh on sentiment. The Stoxx Euro 600 Index ‎fell by 1.2%. Euro reversed its weekly advance while Pound ‎sterling dropped by 0.7%. ‎

In Asia, the regional markets dropped by 0.1-1.5% on concerns ‎on future Fed rate hikes. India’s SENSEX (-0.1%) and Korea’s ‎KOSPI (-0.2%) were the major outliers. Tech and consumer ‎discretionary shares led the decline as investors decided to ‎stay cautious. The markets in China were closed for trading. ‎The move in the U.S treasury markets have renewed concerns ‎on key regional currencies (Yen and Yuan) and overshadowed ‎the valuation appeal in most of the regional markets.  ‎

Daily Market Monitor 9-10-2022