Reports

2022-10-17

Daily Market Monitor 17-10-2022

Tadawul Review:

Tadawul All Share Index (TASI) remained flat on Sunday, ‎decreasing by just 16 points (-0.1%) to close at the 11,406 ‎level. The index opened the session at 11,440, slightly higher ‎than the previous closing level (+18 points) and traded ‎around its previous close in the range of 137 points ‎throughout the session. In general, 13 out of 20 sectors closed ‎in the red zone, while 83 stocks rose and 116 fell. Energy (-‎‎1.1%), Utilities (-1.7%), and Materials (-0.1%) sectors were ‎the major drags on the index. Stocks-wise, Al Rajhi Bank ‎‎(+0.5%), Saudi British Bank (+1.6%), and Jabal Omar (+2.3%) ‎contributed the most to the index. Trading activity also ‎witnessed a drop in the volume and value of trading by 13% ‎and 19%, respectively, to reach 99mn shares and SAR3.2bn ‎‎(lowest since April-2020). The index is unlikely to show any ‎change in its current pattern of trading in a range in near-‎term.‎

 

 

Market Wrap International:

Following an eventful last week, the global equity indices may ‎look to find footing in the midst of acceleration of earnings ‎announcement for Sep-end quarter. The focus is likely to shift ‎to ongoing fiscal policy nervousness in the U.K and the ‎outcome of the meeting of China Communist Party. In the ‎U.S, the CPI data has almost cemented another 75bps hike in ‎Fed’s policy rate decision due in early Nov-22. Treasury yields ‎have accordingly adjusted to show higher likelihood of the ‎same action. Housing market and business confidence survey ‎data seem crucial for next week. Result season could turn out ‎to be a source of major excitement for the market.‎

In Europe, U.K is set to release CPI data next week with a ‎higher probability of a double-digit inflation print for Sep. ‎Investors are looking for clarity on the financing plans for the ‎fiscal package announced by a new government in the UK. ‎Both ECB (end Oct) and BOE (Nov) are likely to announce ‎monetary policy soon where investors are expecting jumbo ‎rate hikes.‎

In Asia, CPI in Japan, 3Q GDP estimate and rate decision in ‎China are important events due next week. The investors will ‎also keenly await the result of the CPP where the congress, ‎besides electing a new leader for the next five-year term, may ‎set a new tone to China’s existing economic and foreign ‎policies. With Yes coming close to the 150 mark and the latest ‎statement from the central bank chief, the investors will also ‎look for any possible intervention to stabilize the currency.‎

Daily Market Monitor 17-10-2022