Reports

2023-07-12

Daily Market Monitor 12-07-2023

Tadawul Review:

The Tadawul All Share Index (TASI) rose on Tuesday’s session by 78 points (+0.7%), closing at 11,665 levels. TASI opened the session positively with 17 points from previous close and continued to rise gradually until the end of the session. In general, 12 out of 20 sectors closed in the green zone, while 74 of 223 stocks rose and 145 fell. Banks (+1.1%), Telecom (+2.2%), and Food and beverages (+2.5%) sectors contributed the most to the index's (+64 points) rise. Stock-wise, Al Rajhi Bank (+0.8%), Etihad Etisalat (+4.9%), and Saudi National Bank (+1.1%) were the major contributors. The trading volume activity decreased by -25% DoD to reach ‎‎355mn shares, while the trading value increased by 13% DoD to reach SAR7.8 bn.

 

 

Market Wrap International:

The global equity markets extended the dull phase with low volumes and range-bound movement to key indices. While the investors welcome the much-expected reports of new measures by Chinese authorities, the worries over policy rate direction and the upcoming CPI data made investors more cautious. In the U.S, the S&P 500 and Nasdaq Composite indices moved in a narrow range and eked out 0.7 | 0.5% gains at the close. Bank stocks were in focus due to news reports of possible increase in capital requirement for banks, particularly regional small banks, and the announcement of June-end results.

In Europe, the Stoxx Europe 600 Index managed to close with minor gains of 0.7%. Investors showed optimism over the fresh measures in China. Mining and construction were the key outperformers. The U.K was in the limelight with the fresh economic data (weekly earnings) highlighting the need for further hike in interest rate. Meanwhile, mortgage rates for different tenures made fresh records (2-year elevated to highest since 2008).

In Asia, the authorities in China broadened the scope of incentives for real estate loans in a move which would allow more room for real estate companies to deliver on under-construction projects. The impact of the announcement was visible with indices in China (Hang Seng: +0.9%, CSI 300:+0.7%) making significant moves. Semiconductor names were also in demand after TSMC posted a better than expected sales report. Tech heavy indices of KOSPI (+1.7%) and TAIEX ‎‎(+1.5%) made a big jump. Indices in Japan and India bucked the regional trends.

Daily Market Monitor 12-07-2023