Reports

2022-12-25

Daily Market Monitor 25-12-2022

Tadawul Review:

Tadawul All-Share Index (TASI) closed Thursday's session down -61 points (-0.6%) to close at 10,216 levels. TASI opened the session positively (+20 points) and then continued in a largely stable range, as trading settled between levels of 39 points from the opening to the end of the normal trading hours. This was before TASI retreated by ‎‎-42 points in the closing auction, adding to its daily losses. In general, 10 out of 20 sectors closed in the red, while 106 stocks rose and 90 fell. Banks (-1.4%), Materials (-0.5%), and Food and Staples Retailing (-1%) sectors were the major drags on the index and contributed a total of -61 points. Stocks-wise, Al Rajhi Bank (-2%), Saudi National Bank (-1%), and Riyad Bank (-1.6%) pulled the index down the most. The trading activity fell in volume and value by 27% and 25%, respectively, to reach 100mn shares and SAR2.7bn. TASI is unlikely to break free from its current indecisiveness. The latest moves in the international market, in particular COVID-19 updates in China, will likely weigh on market moves in near-term.

 

 

 

Market Wrap International:

The global equity indices moved in divergent directions amid two major concerns-China COVID infection post and economic data in the U.S. Investors remain cautious going into year-end holiday season following major surprises in monetary policy by global central banks and rapid rise in infection cases in China. In the U.S, the benchmark S&P 500 Index rose 0.‏6‏% on Friday, largely supported by energy (+3.6%) and Communication Service (+1.1%). The concerns on future rate hikes and recession have defined recent moves in the U.S equity indices.

In Europe, the benchmark Stoxx Euro 600 Index recovered by ‎‎0.04% on Friday. The drop-in gas prices in the region has been major relief for the region though investors remained wary of the latest development in China and the economic data in the U.S

In Asia, almost all major indices moved down in sync with latest COVID-19 infection updates from China fanning fears of a significant economic slowdown and possible reversal of latest easing of COVID-19 restrictions. Meanwhile, the surprise action by Bank of Japan remained a major overhang for market performance. Majors in the region fell by 0.4-1.8% with KOSPI (-1.8%), SENSEX (-1.6%) and TAIEX (-1.2%) being the top three major underperformers.

 

Daily Market Monitor 25-12-2022