Reports

2022-10-03

Daily Market Monitor 3-10-2022

Tadawul Review:

Tadawul All Share Index (TASI) recorded a positive closing for the fourth straight session on Sunday and a gain of 82 points (+0.7%) at 11,487 levels. TASI underwent an initial nervous trading period in the first hour of the session after a modest positive opening. However, the index started its gradual rise to compensate for its losses and gained 161 points from its intraday low. In general, 18 out of 20 sectors closed in the green zone, while the advance to decline ratio came in at 4:1. Banks (+1.1%), Real Estates (+3.1%), and Materials (+0.4%) sectors contributed the most to the index's rise (+62 points). Stock-wise, Al-Rajhi Bank (+1.5%), Saudi British Bank (+2.4%), and Bank AlBilad (+3%) contributed most to the stability and rise of the index. The trading activity witnessed a decline of 14% and 24%, respectively, to reach 148mn shares and SAR4.9bn. TASI may seek to sustain its momentum after four-straight sessions of positive closing amid stability in oil prices and the upcoming result season for Sep-end quarter.

 

 

Market Wrap International:

Following one of the worst monthly performances in Sep-22, the global equity markets may seek to find footing amid increased nervousness. The near collapse of Pound and subsequent recovery, a number of comments from Fed officials and the release of economic data, particularly PCE in the U.S towards the end of the week, dominated the markets proceedings last week. The focus for now is likely to shift to assessment of the impact of recent policy decisions on key economic indicators (labor markets, consumer sentiment, factory activity), corporate earnings (margin & volume impact), and inflation numbers (CPI in the U.S in particular). Possibility of another dead cat bounce kind of rally has grown following volatility last week. In the U.S, key economic data is centered around labor market and industrial activity which will provide a sneak peek into the health of the economy in 3Q.

For Europe, currency weakness in Pound and Euro and the persistent geopolitical risk have marred market proceedings. The downgrade in outlook of the U.K and the latest hawkish comments from the ECB officials will likely be key discussion points for the investors next week.

In Asia, divergence in performance has emerged due to overriding market specific factors. Currency weakness in Japan and China and subsequent policy actions to stabilize the markets made major headlines last week. Broadly speaking, valuations remain enticing as many benchmarks trade at multi-year lows and accordingly may provide further support to the market.

Daily Market Monitor 3-10-2022