Reports

2022-09-08

Daily Market Monitor 8-09-2022

Tadawul Review:

Tadawul All Share Index (TASI) underwent yet another volatile session and fell 131 points (-1.1%) on Wednesday at ‎‎11,863.81, recording the third consecutive day of decline. The market opened with a decrease of 11 points from the previous close and reached the intraday high of +50 points. However, the index came under selling pressure till the session's close. 19 out of 20 sectors closed in the red while only 22 stocks were in positive. The materials (-2.5%) and banking sector (-0.8%) were the major drags. As for the shares, Al Rajhi Bank (-0.8%), Bank Saudi Fransi (-3.6%) and Aramco (-0.7%) had the greatest impact on the decline in the index. In general, the trading value increased by 5% to reach ‎‎5.6 billion riyals, while the trading volume decreased -3% to reach 132 million shares compared to the previous day. A steep drop in oil prices and volatility in global markets may continue to have bearing on TASI.

 

 

Market Wrap International:

The global equity markets moved in divergent directions on Wednesday as commodity prices softened. A sustained drop in commodity prices may lower inflationary pressure and push the central banks to adopt a less hawkish stance. The yields on US treasury eased, though the dollar index set a new all-time high on currency weakness in Asia. In the U.S, the S&P ‎‎500 and Nasdaq Composite Index rose 1.8-2.1%, shrugging off the negative momentum from the past two sessions. All sectors, except energy, contributed to the rise in the indices with tech, utilities and consumers leading the charge.

In Europe, the Stoxx Euro 600 Index gave away gains from the past two sessions and dropped by 0.6%. Investors were not budged by the latest news flow on possible economic support package by the EU to ease the energy cost. The combination of supply shortage and price increase threatened power outages and gas load management in many parts of the region in the winter season. Also, in UK Ftse100 dropped by 0.9%.

In Asia, investors were spooked by the consistent rise in yields in the U.S and currency weakness in many of the economics ‎‎(China, Japan, Korea, Malaysia). Many currencies in the region made somber records and fell to multi-year low. Equity indices in Korea (KOSPI: -1.4%), Taiwan (TAIEX: -1.8%) took the brunt of selling in tech stocks. China’s Shanghai Composite Index ‎‎(+0.1%) remained once again unscathed for the third straight session, thanks to new measures to support the economy.

 

Daily Market Monitor 8-09-2022