Reports

2023-03-20

Daily Market Monitor 20-03-2023

Tadawul Review:

Tadawul All-Share Index (TASI) closed Sunday's session up ‎‎+181 points (+1.8%) to settle at 10,158 levels. TASI had opened the session positively, up 36 points from the previous closing level, and continued to rise positively for the rest of the session hours. In general, 17 out of 20 sectors closed in the green zone, while 156 stocks rose and 52 fell. Banks ‎‎(3.2%), Materials (1.8%), and Real Estate (3%) sectors contributed the most to the index's rise of a total of +145 points. Stock-wise, AlRajhi Bank (3.3%), Saudi National Bank ‎‎(3%) and Riyad Bank (4.2%) contributed most to the rise of the index. The trading activity witnessed a decline in the volume and value of trading by 49% and 56%, respectively, to reach 118mn shares and SAR3.4bn.

 

 

Market Wrap International:

The global equity markets face a tough period ahead with the decision by FOMC, the survival battle of Swiss banking giant, and mid-sized bank in the U.S, CPI data in Japan. All in all, markets likely remain more choppy in near-term. A smooth resolution of the issues relating to financial stability may calm the investors nerves. In the U.S, the market faces the Fed Week whereby the FOMC will face a tough decision on rate hike in the face of renewed financial stability in the U.S. Consensus expects the Fed to make another 25bps rate increase in its meeting on 22nd Mar.

In Europe, reports suggest the officials are working to meet the apparent deadline for a possible deal between UBS and Credit Suisse. Regardless of the outcome, the European banks will remain in the limelight given fragile investors’ sentiment. The Bank of England is likely to follow in the footsteps of  the ECB and may stick to its plans of further 25bps hike in interest rate.

In Asia, the latest cut in reserves requirement in China and the news flow around the U.S and European banking sectors may produce the divergent pulls for the markets. A possible deal in Europe may allow markets in the region to make further recovery. The CPI data in Japan is due this week and will once again bring the ultra-loose monetary policy in Japan.

 

 

Daily Market Monitor 20-03-2023