Reports

2023-03-09

Daily Market Monitor 9-03-2023

Tadawul Review:

Tadawul All-Share Index (TASI) ended its 6-day winning streak to close lower on Wednesday, declining by 63 points (-‎‎0.6%) to settle at 10,410 levels. TASI opened the session negatively, down by -53 points, due to fluctuations in Brent oil prices and global market indices. The index continued to decline during its first hour, reaching its intraday low of -146 points, before TASI started reducing losses. In general, 13 out of 20 sectors closed in the red zone, while 59 stocks rose and ‎‎152 fell. Banks (-1.2%), Materials (-0.8%), and Real Estate (-‎‎0.8%) sectors were the major drags on the index and contributed a total of -60 points. Stocks-wise, Al Rajhi Bank ‎‎(-1.1%), Saudi National Bank (-1.9%), and SABIC (-1.2%) pulled the index down the most. The trading activity witnessed declines in volume and value by 16% and 10%, respectively, to reach 148mn shares and SAR4.1bn. The index is likely to follow the footsteps of its EM peers and may show sideways moves in the near-term.

 

 

Market Wrap International:

The global equity markets remained in the grip of heightened volatility amid rise in the treasury yields in the U.S and the drop in commodity prices. The yield on 2-year U.S bond crossed the 5% mark for the first time since 2007 while that of ‎‎10-year bond flirted with 4% mark. The latest economic data on the labor market in the U.S came in firmer than expected and supported a more hawkish stance of the U.S Fed on interest rate. The investors were also tentative on the 2nd day of the Fed Chair’s testimony in the Senate. The S&P 500 and Nasdaq Composite fluctuated around the previous close and ended the session with minor gains/ of ‏0.1‏% and ‏0.4‏%. ‏7‏ out of ‏11‏ sectors on the S&P 500 eked out positive returns.

In Europe, the Stoxx Europe 600 Index managed to pare intraday losses and closed with little changed. The country level indices moved in divergent directions. The revised data for the Eurozone revealed 4Q GDP was flat, down from a preliminary estimate of 0.1% growth.

In Asia, the major indices digested the volatility in the U.S and Europe markets following comments from the Fed chair a day. HangSeng (-2.4%) and KOSPI (-1.3%) were the major underperformers in the region while Topix (+0.3%) and Sensex ‎‎(+0.2%) managed to buckle the regional trend.

Daily Market Monitor 9-03-2023