2023-06-06
Daily Market Monitor 6-06-2023
Tadawul Review:
Tadawul All Share Index (TASI) rose on Monday’s session for the third day, climbing by 72 points (+0.6%) to close at 11,294 levels. TASI opened the session positively, by 13 points, and continued to rise, reaching its intraday high by 118 points in the first trading hour. However, TASI gradually declined in the remainder of the trading hours. In general, 15 out of 20 sectors closed in the green zone, while 126 stocks rose and 74 fell. Food and beverages (+3.0%), Energy (+1.2%), and Insurance (+3.2%) sectors contributed the most to the index's rise by 30 points. Stockwise, Aramco (+1.2%), Almarai (+3.6%), and Elm Co. (+10%) were the major contributors. The trading activity witnessed an increase in volume and value of 29% and 46%, respectively, to reach 182mn shares and SAR6.4bn in value traded.
The global equity indices moved in a narrow range with investors deciding to stay cautious on the release of mixed economic data, potential new regulations for banks and lack of tangible progress on improving ties between the U.S and China. The market’s view on status-quo or rate hike in the Fed’s upcoming meeting remained divided. Meanwhile the treasury yields inched up further on Monday by 3-5bps. In the U.S, the tech -based rally which has propelled the S&P 500 and Nasdaq Composite fizzled out, bringing the non-tech stocks in sharper focus. The key indices moved sideways and managed to close with minor losses of 0.2% and 0.1% respectively.
In Europe, the Stoxx Europe 600 was little changed at session negatively (0.5%). The country level indices too failed to make any major move despite positive moves in mining and energy stocks. The release of economic data (EuroZone PPI, PMI,) for the region and major economies have made investors a bit more cautious.
In Asia, indices in Japan stole the limelight and were up 1.7% (Topix) to 2.2% (Nikkei 225). The currency weakness and continuation of ultra-loose monetary policy stance has supported the investors sentiment and boosted corporate earnings. The hopes of introducing fresh measures to stimulate economic growth in China remained high. The key indices in the country (Shanghai Composite: +0.1%, Hang Seng: +0.8%) lifted the key indices. Sensex (+0.4%) and Kospi (+0.5%) recorded gains on Monday while Taiex remained broadly unchanged.
Daily Market Monitor 6-06-2023
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