Reports

2022-12-14

Daily Market Monitor 14-12-2022

Tadawul Review:

Tadawul All-Share Index (TASI) made a recovery and increased by +188 points (+1.9%) on Tuesday to close above ‎‎10,200 levels and settle at 10,221. TASI opened the session positively and continued its strong rise until the middle of the session, reaching its intraday high and achieving +270 points. TASI retreated and reduced its gains for the rest of the session. Recovery in oil prices in international markets was the major trigger for the market.  In general, 16 out of 20 sectors closed in the green, while 175 stocks rose and 32 fell. Banks (+3.4%), Materials (+0.9%), and Energy (+1.4%) sectors contributed the most to the index's rise of +149 points. Stock-wise, Al Rajhi Bank (+4%), Saudi National Bank ‎‎(+2.7%), and Aramco (+1.3%) contributed most to the rise of the index. The trading activity witnessed a decline in the volume and value of trading by 17% and 5%, respectively, to reach 534mn shares (Americana: 417.8mn shares) and SAR5.6bn (Americana: SAR1.3bn). The index is likely to sustain its recovery taking a cue from movement in international equity benchmarks and oil prices.

 

 

Market Wrap International:

The global equity indices have had a field day on Tuesday on the back of better than expected CPI print in the U.S and the further reaffirmation of the economic reopening theme of China.  The actual CPI in the U.S for Nov-22 came in at 7.1% vs consensus expectation of 7.3%.Assets across the spectrum celebrated CPI deceleration with the treasury yields in the U.S, commodity prices rising and the U.S Dollar Index retreated. The benchmark S&P 500 and Nasdaq Composite jumped ‏0.7‏% and ‏1‏% at session close with real estate, energy and communication services in the lead.  The data reaffirm expectations that policy measures since the start of this year are decelerating inflation and makes a case for lower peak in the interest rate than previously expected by investors.  All eyes are now on the FOMC meeting due tomorrow.

In Europe, a more or less similar response in the key equity indices was visible. The Stoxx Euro 600 Index was up 0.1% before the CPI release and accelerated its ascent after the data to close with ‏1.3‏% gain. Real Estate, tech and Cons. dictionaries were the three major outperformers for the day. Country level indices too closed with modest gains of 0.‏8‏-1.‏4‏%.

In Asia, markets moved in divergent directions with Hang Seng once again being the pick of the day with ‏0.7‏% rise on the back of further new measures towards economic reopening in Hong Kong. Indices in Japan (TOPIX: +0.4%), and India (SENSEX: +0.‏6‏%) were up while Shanghai Composite (-0.‏1‏%) and TAIEX (-0.6%) were down. Asia was closed before the release of CPI data in the U.S

Daily Market Monitor 14-12-2022