Reports

2022-09-13

Daily Market Monitor 13-09-2022

Tadawul Review:

Tadawul All Share Index (TASI) closed positive for the second consecutive session on Monday and added 82 points (+0.7%) to close at 12,022levels. Strong economic data on industrial production and movement in international markets helped TASI to sustain its positive momentum. The index survived an initial nervous hour to regain its upward trajectory till the session ended. In general, 12 out of 20 sectors closed in the green zone, while the advance to decline ratio came in at ‎‎~1:1. Banks (+1.5%), food production (+1.4%) and health care ‎‎(+1.6%) contributed the most to the index’s rise (+75 points). Among the biggest gainers of Monday's session were Tihama Advertising and Public Relations Company (+7.5%), Saudi Chemical Company (+6.7%), and Nama Chemicals Company ‎‎(+4.7%). The trading volume and value decreased by -8% and ‎‎-3%, respectively, to reach 112 million shares and 4413 billion riyals. TASI is likely to draw inspiration from the movement in the international markets and higher oil prices and may look to sustain the positive momentum. 

 

 

Market Wrap International:

The global equity indices picked up from where they have left off last week to record yet another session of gains on Monday. The expectation of softening of inflation in the U.S ‎‎(data due on Tuesday) and the latest statements from the ECB official kept the sentiment positive. In the U.S, the benchmark indices rose by 0.7-1.3% on Monday led by energy and tech names. All eleven sectors in the S&P 500 Index closed in the green. Yields on the US treasuries also moved higher with the latest auction drawing not a very encouraging response.

In Europe, the Euro gained as much as 1.6% on Monday, recording the highest gains since Mar-22. The currency appreciation prompted many of the investors who have been sitting on the sidelines to put money to work. The benchmark Stoxx Euro 600 Index jumped 1.8% to record its third straight session of gains led by auto, retailer and miners. Country level indices also closed the session on a positive note.

In Asia, a softer dollar, and strong sales data for chip makers in Taiwan drove the markets higher. Indices in Japan (Topix: ‎‎0.8%), Taiwan (TAIEX: 1.5%, TSMC contributing heavily to gains) and India ‎‎(SENSEX: 0.5%) extended the positive momentum into the third session. Chip makers in the region ‎‎were positive on news of more curbs of the US exports of semiconductor and chip making tools to China. Markets in China, Hong Kong and Korea were for a public holiday.

Daily Market Monitor 13-09-2022