Reports

2023-03-16

Daily Market Monitor 16-03-2023

Tadawul Review:

Tadawul All-Share Index (TASI) declined on Wednesday for the fourth day in a row and fell -159 points (-1.6%) to close at 10,049 levels, which is the lowest closing level since ‎‎02/28/2023 (12 trading sessions). TASI had opened the session positively, up 26 points from the previous closing level, and continued to rise until the middle of the session; however, TASI started to decline after that, losing -216 points from its intraday high and closing at its intraday low of ‎‎-159 points. In general, 16 out of 20 sectors closed in the red zone, while 44 stocks rose and 173 fell. Banks (-1.7%), Materials (-1.5%), and Energy (-2.7%) sectors were the major drags on the index and contributed a total loss of -103 points. Stocks-wise, Al Rajhi Bank (-1.4%), Saudi National Bank (-‎‎2.7%), and SABIC (-2.6%) pulled the index down the most. The trading activity witnessed an increase in volume and value by 35% and 21%, respectively, to reach 198mn shares and SAR5.4bn. Oil prices and volatility in international markets remained major drivers of the TASI. Possibility of the index retesting its psychological levels of 10k remains high.

 

 

Market Wrap International:

The global equity markets were once again in the grip of fears of contagion in the financial sector spreading to other regions following the collapse of banks in the U.S. The European financial names were in the limelight following a steep drop in prices of Credit Suisse (CS), a global investment bank. A significant drop in oil price of 2.4-4.9% and the plunge in the treasury yields also added to the drama. Meanwhile, the latest economic data in the U.S offered much-needed relief but to no avail. The benchmark S&P 500 Index fell 0.7%. The Producer Price Index (PPI) unexpectedly drop for the month, though the revision in the previous month’s data put a question mark on the quality of the surprise.

European financials were the epicenter of volatility on the Wednesday as the statement from the largest shareholder in CS raised doubts on bank’s ability to attract fresh capital. CS’ stock price fell following the statement, and pressured the whole banking system in the region. Financials went down by ‎‎6.6% and along with energy (-5.8%) dragged the benchmark Stoxx Europe 600 Index by 2.9%. Country level indices faced the similar fate and were down by 3.3-3.8%.

Asia’s major indices was broadly cushioned by the volatility seen in other regions partially due to strong economic data ‎‎(retail sales, industrial output) in China. Hang Seng (+1.7%), Shanghai Composite (0.6%), KOSPI (+1.3%) were the major gainers in the region while other indices moved within a range of -0.6% to +0.6%.

 

 

Daily Market Monitor 16-03-2023