Reports

2022-09-07

Daily Market Monitor 7-09-2022

Tadawul Review:

Tadawul All Share Index (TASI) dropped 105 points (-0.87%) on Tuesday, to close at its lowest level since June 26 at ‎‎11,994.72.‏ ‏The market opened with an increase of 16 points and made an intraday high of 53 before succumbing to selling pressure. The decline in the index was broad-based, with 17 out of 20 closing in the red, 163 shares down, and 47 shares up (Advance to decline ratio of 1:3.5). The usual suspects for the decline include the banking sectors (-‏0.6‏%), materials (-‎‎1.4%) and energy (-1.0%), and contributed a total of 60 points in the loss. The major stocks in the decline of the index were Al-Rajhi Bank (-1.6%), Aramco (-0.9%) and Al-Inma Bank (-2.7%). The session also witnessed an increase in trading activity with the quantity and value of trading by 7% -‎‎17%) respectively, to reach 135 million shares and 5.3 billion riyals. The index has breached an important psychological level of 12,000. Stability in international markets and oil prices remain important for TASI to break free from current negative sentiment.

 

 

Market Wrap International:

The global equity indices failed to shake off the negative momentum and underwent yet another session of losses. Asian markets, however, ditched the broader trend and held the ground. In the U.S, the benchmark indices were in for a rough day following an extended weekend. The indices gave away the initial positive move to drop by ‏0.4‏-‏0.7‏% at session close as treasury yields rose across the curve. The strong US service sector data once again reinforced the view that the Fed could afford to sustain a hawkish stance to tame inflation without making a major compromise on growth or employment.

In Europe, the benchmark indices too had a volatile session. The indices traded in a positive territory for most of the session on optimism over potential introduction of a fiscal support package by the new premier in the U.K. The Euro made modest recovery while country-level indices were positive. Post the release of data in the U.S, the market painted a completely different picture and erased initial gains only to recover modestly to close with marginal gain of ‏0.2‏-‏0.9‏%.

In Asia, most indices were able to close with no major change to previous close. SENSEX in India (-0.1%), KOSPI in Korea ‎‎(+0.3%), Hang Seng in Hong Kong (-0.1%) and Topix in Japan ‎‎(-0.1%) closed the session on Tuesday little changed. Shanghai Composite in China, however, managed to gain for the second straight session (+1.4%) with real estate developers, solar energy and automobiles making the most impact. Market participants are expecting the Chinese authorities to announce more measures to support economic activity.

Daily Market Monitor 7-09-2022