Reports

2023-02-07

Daily Market Monitor 7-02-2023

Tadawul Review:

Tadawul All-Share Index (TASI) remained unchanged on Monday, as it declined by only 3 points to close at 10,556 levels. Monday's trading session witnessed fluctuations as the TASI index opened negatively and continued to decline in the first hours of trading, as it recorded an intraday low, retreating by 107 points. However, TASI then began to reduce its losses to complete the rest of the trading hours on an upward trajectory to erase most of its daily losses. In general, 11 out of 20 sectors closed in the red zone, while ‎‎102 stocks rose and 108 fell. Materials (+0.9%), Health Care ‎‎(+1.5%), and Capital Goods (+0.9%) sectors contributed to the stability of the index, while Banks (-0.4%), Food and Beverages (-1.2%), and Energy (-0.3%) were a drag on the index. Among stocks, Riyad Bank (-3.3%), Alinma Bank (-‎‎3.1%), and Saudi British Bank (-2%) pulled the index down the most. Trading volume activity was down 18% DoD to ‎‎175mn shares, while trading value was up 18% DoD to SAR4.5bn. It is likely that we will see TASI moving sideways in the upcoming sessions.

 

 

Market Wrap International:

The global equity markets underwent a fresh bout of downside volatility following a hugely surprising job report in the U.S on Friday. The US-China relationship further weighed on investors sentiments. The yields on the U.S treasuries rose for the second straight session as market expectation on future rate hike and the terminal rate readjusted. In the U.S, the benchmark S&P 500 Index and Nasdaq Composite fell by respective ‏0.6‏ and ‏1‏%, extending the losses since the release of the report. ‏9‏ out of ‏11‏ sectors on S&P 500 were in red. Communication Services (%1.3-), Information Technology (-‎‎1.2%) and Materials (-1.1%) were the major drags on the S&P ‎‎500 performance.

In Europe, the markets pulled back further on similar concerns as investors decided to book profit. The benchmark Stoxx Europe 600 Index dropped by 0.8% at session close. FTSE-100 which touched a new all-time high fell 0.8% while other country indices (DAX: -0.8%, CAC:-1.3%) also moved in the same direction.

In Asia, barring Japan, all major indices recorded losses. HangSeng (-2%), KOSPI (-1.7%) and TAIEX were the major underperformers in the region. Other markets fell in the range of 0.6-0.8%. Japan (TOPIX: +0.5%) buckled the broader trend on fresh market news of appointment of BoJ governor who is widely seen as more pro-loose monetary policy. ‎‎

Daily Market Monitor 7-02-2023