Reports

2023-02-08

Daily Market Monitor 8-02-2023

Tadawul Review:

Tadawul All-Share Index (TASI) declined on Tuesday for the seventh day in a row by -86 points (-0.8%) to close at 10,470, which is the lowest closing level YTD. TASI opened the session positively but was soon exposed to selling pressure and declined for the rest of the session, closing just two points above its intraday low. Overall, 15 out of 20 sectors closed in the red zone, while 67 stocks rose and 144 fell. Banks (-1.7%), Materials (-0.4%), and Food and beverages (-‎‎1.3%) sectors were the major drags on the index and contributed a total of -75 points. Stocks-wise, Al Rajhi Bank ‎‎(-1.6%), Saudi National Bank (-1.8%), and Riyad Bank (-3%) pulled the index down the most. The trading activity also witnessed a decline in the volume and value of trading by 6% and 16%, respectively, to reach 165mn shares and SAR3.8bn‏.‏ TASI is likely to make an attempt to reverse its course with recovery in oil prices and recent correction.

 

 

 

Market Wrap International:

The global equity markets were broadly indecisive on Tuesday amid confusion around the policy rate and not-so-eventful result season so far. The treasury yields eased slightly following two days of upward adjustment while commodity price also recovered. In the U.S, the first public comments by Fed Chairman post last Friday’s surprised labor market report was seen relatively dovish in the backdrop of comments made by other Fed officials. The S&P 500 and Nasdaq Composite Changed direction following FedSpeak and pared intraday losses to close with ‏1.3‏% and ‏1.9‏% gains.

In Europe, the benchmark Stoxx Europe 600 Index oscillated around its previous close for most of the session and managed to close with a minor gain of 0.2%. The recent performance of the key indices and investors unease over the recent move in the treasury yields in the U.S have made investors more cautious. Energy and mining names were the key performer with BP and BNP Paribas announcing spectacular results and/or buyback plans. The country-level indices moved in divergent direction with FTSE-100 receiving support from energy names.

 

In Asia, major indices moved higher with concerns on geopolitical tension between the U.S and China and interest rate in the U.S easing as focus shifted to result seasons and currency movement. Tech names were the key drivers across markets as Baidu announced its plans to introduce its high-powered AI platform to compete with ChatGPT.  The major indices were up in the range of 0.‏2‏-0.6% barring SENSEX in India which fell by 0.‏4‏%. Adani Group shares recovered from the lows after the group prepaid some debt.

 

Daily Market Monitor 8-02-2023