2023-05-22
Daily Market Monitor 22-05-2023
Tadawul Review:
Tadawul All Share Index (TASI) remained unchanged on Sunday’s session, with a slight decline of -3 points from the previous close to settle at 11,342 levels. TASI opened the session positively, by 7 points from the previous close, then reached its intraday low in the middle of the session by -29 points. Later on, TASI managed to recover and minimize its losses at the end of the session. In general, 12 out of 20 sectors closed in the red zone, while 109 stocks fell and 95 rose. Banks (-0.1%), Materials (-0.2%), and Insurance (-1.5%) sectors contributed the most to the index's fall by 12 points. Stockwise, Al Rajhi Bank (-0.3%), Saudi National Bank (-0.4%), and Bank AlBilad (-1.4%) were the major contributors. The trading activity witnessed a decline in volume and value by -23% and -29%, respectively, to reach 167mn shares and SAR4.8bn in value traded.
The global equity markets are likely to closely track development on the U.S debt ceiling, increased geo-political tension between the U.S and China and comments from central bankers as key themes for the next week. The economic data on inflation and activity once again be in focus. Investors have pinned hopes of progress on the debt ceiling impasse over the weekend which may help the market to avoid further volatility in capital markets. To this end, the expected call between the President and the House Speaker has assumed added importance.
In Europe, the markets defied the concerns on the U.S debt ceiling on Friday as investors remained positive on Mar-end result season. Economic data relating to growth (Final GDP numbers for Germany for, Euro Area Flash PMI, Germany IFO Survey for May) and Inflation (CPI in U.K) and European Parliament Elections are the important updates for the market. The former may further substantiate the underlying trend for the corporate earnings growth.
In Asia, the trade war between the U.S and China is taking a new turn with China terming memory chips from Micron technology Ltd. The announcement came in the wake of an aggressive tone adopted in the press release of the G7 summit in Japan. The CPI inflation in Japan remains an important economic update in Asia.
Daily Market Monitor 22-05-2023
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