2023-10-05
Daily Market Monitor 5-10-2023
Tadawul Review:
Tadawul All Share Index (TASI) fell for the fifth straight session, dropping by -112 points (-1.0) to close at 10,840 levels. TASI opened on a negative note of -19 points and continued declining during the session until the end. Overall, 17 out of 20 sectors closed in the red zone, while 176 shares fell and 43 rose. Banks (-1.0%), Materials (-1.2%), and Telecom (-2.3%) sectors contributed the most to the index fall. Stockwise, Aramco (-0.7%), Al Rajhi Bank (-0.6%), and Riyad Bank (-2.2%) were the major contributors. The trading activity due the off market transaction in Dar Al Arkan amounted to SAR 2.1 billion contributed to a significant increase in volume and value of 94% and 30%, respectively, to reach 323 shares and SAR6.3 billion in value traded.
In the U.S. markets, with political turmoil as the House speaker was suddenly removed and expectations of a forthcoming interest rate hike, bond yields are spiraling ever higher amid persistently tight job market readings. The S&P 500 ended on a positive note by +0.8% with nine of eleven listed sectors rising, and the Nasdaq Composite rose by +1.4% . The 30-year Treasury yield crossed above 5% for the first time since August 2007, and 10-year and five-year yields hit their highest since 2007.
In Europe, the Stoxx Europe 600 was lower by-0.1%, and stayed near six-month lows on Wednesday as investors maintained their attention on the ongoing rise of bond yields. In the UK, the FTSE-100 index closed down by -0.8% and the country-level indices closed within a range of -0.005%|+0.1%.
In Asia, traders are now starting to adjust to the new economic reality that may see monetary policy tightened for an extended period. The Chinese stocks listed on Hang Seng declined by (-0.8%), and indices in Japan made further losses by (TOPIX:-2.5%|NIKKEI 225:-2.3%) as the yen recovered after breaking 150 to the dollar, fueling inflation pressure in Japan and weighing on sentiment. The other major indices were negative within a range of -2.4% to -0.4%.
Daily Market Monitor 5-10-2023
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