Reports

2023-03-13

Daily Market Monitor 13-03-2023

Tadawul Review:

Tadawul All-Share Index (TASI) closed down -79 points (-‎‎0.8%) on Sunday to settle at 10,384 levels. TASI had opened ‎the session negatively, affected by the decline in global ‎markets indices following the collapse of one of the largest ‎banks in the United States, "Silicon Valley Bank". TASI ‎opened the session down -31 points from the previous close ‎and continued to decline for the rest of the session, as the ‎session was trading in the range of 93 points. In general, 14 ‎out of 20 sectors closed in the red zone, while 73 stocks rose ‎and 132 fell. Banks (-1.8%), Telecom (-1.3%), and Materials (-‎‎0.2%) sectors were the major drags on the index and ‎contributed a total of -79 points. Stocks-wise, Al Rajhi Bank ‎‎(-1.7%), Riyad Bank (-3.1%), and Saudi National Bank (-1.2%) ‎pulled the index down the most. The trading activity ‎witnessed declined in volume and value by 6% and 13%, ‎respectively, to reach 134mn shares and SAR3.4bn. TASI will ‎likely move sideways because of the uncertainty of the global ‎market’s indices.‎‎

 

 

Market Wrap International:

The global equity markets will likely remain volatile given the ‎fallout from the collapse of the sizable bank in the U.S, a slew ‎of economic data and a policy decision by the ECB due later ‎this week. The retreat in yields in the U.S treasury bonds will ‎face a litmus test on the release of CPI data for Feb-23 ‎‎(Consensus:0.4% vs 0.5% previous). Investors will also assess ‎other important data points in the U.S which include housing, ‎ISM, PPI, and retail sales data for the possible impact of Fed ‎rate hiking cycle.‎

In Europe, the ECB is expected to announce a rate decision ‎on Thursday. A 50bps hike in rate appears a favored decision ‎given the minutes of the last meeting. Beyond ECB, CPI in the ‎U.K and the annual budget are other important data/events in ‎the region. Financial stocks in the region will likely remain in ‎the limelight with the latest event in the U.S.‎

In Asia, the markets will fully digest the impact of the volatility ‎seen in the global market on last Friday. The region will see ‎important data points in China which may substantiate the ‎market's view of a rebound in economic activity in China. Rate ‎decisions in India and CPI data in a number of countries are ‎other important updates in the region for the week. ‎

Daily Market Monitor 13-03-2023