Reports

2023-01-09

Daily Market Monitor 9-01-2023

Tadawul Review:

Tadawul All-Share Index (TASI) closed Sunday's session with a slight increase of +5 points (+0.05%) to close at 10,537 levels. TASI opened the session positively and sustained the momentum for the first hour of trading. However, TASI retreated after that, leading to volatile trading hours as it continued trading in a narrow range. The trading activity for Sunday's session was in the range of 63 points. In general, 14 out of 20 sectors closed in the green zone, while 134 stocks rose and 69 fell. Materials (+0.6%), Health care equipment and services (+1.5%), and Utilities (+1.3%) sectors contributed to the stability of the index, while Banks (-0.6%), Food and beverages (-0.5%), and Energy (-0.1%) were a drag on the index. Among stocks, Maaden (+2.2%), ACWA Power ‎‎(+1.9%), and STC (+0.8%) contributed most to the rise of the index. The trading activity witnessed a decline in the volume and value of trading by 38% and 19%, respectively, to reach ‎‎110mn shares and SAR3bn. TASI is likely to continue trading in a narrow range.

 

 

Market Wrap International:

The global equity markets are set to pick up from where they have left off. The week ahead is likely to see the release of important economic data, the Dec-end result season to get into full gear and the latest updates on China’s COVID-19 infection and fresh economic support measures. All in all, barring any major negative surprise, markets are likely to see positive momentum. In the U.S, investors will keenly look for the Dec-22 CPI data (due on Thursday) to further substantiate the view of easing in price pressure. Ahead of the data release, the results of major banks may set the tone for the market.

In Europe, investors will closely track the upcoming GDP data in the U.K, and Industrial production data in Germany and the Euro area. The U.K GDP data for the month of Nov-22 will likely reinforce market’s expectation of decline in economic activity for the third straight quarter.

In Asia, investors are likely to give more attention to the upcoming CPI data in Japan for Dec-22. Inflation in Japan is projected to inch high to 3.9% in Dec-22 vs 3.8% earlier and will likely keep investors guessing for timing and direction of further monetary policy measures by the Bank of Japan. Monthly export data in China is another important data point for the region which may highlight the impact of global economic slow-down. Besides, markets will also track for possible new economic support measures by Chinese authorities.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Daily Market Monitor 9-01-2023