Reports

2022-09-05

Daily Market Monitor 5-09-2022

Tadawul Review:

Tadawul All Share Index (TASI) changed its course and gained 52 points on Sunday. The index appeared to have taken a support from its 200DMA of 12,239 which had marginally breached last week. The relative stability in oil prices in international markets on Friday also provided the support. The index made an initial negative move but soon changed its course to make an intraday high of ‏118‏ points before settling down at session’s close. Overall, the gains were evenly distributed with an advance to decline ratio of ‎‎1:1. Major support to the index came from energy (1.4%)  and  materials (0.7%) sectors while utilities (-1.5%) and Insuranc (-1%) were the major drags. The index may look to consolidate its levels around important support levels given the general lack of triggers/news and volatility seen in international markets.

 

 

Market Wrap International:

The global equity indices are likely to struggle to find their feet next week following a steep drop in the past few sessions. Cautiousness likely to prevail as the key concerns on inflation and monetary policy persist as reflected in higher dollar index and bonds yields last week suggest. In the U.S, the trading week will be shortened by a national holiday on Monday. Economic data on production for Aug-22 due next week remains a key focus area for investors after soft data in the labor market eased expectations of a jumbo rate hike in the upcoming policy decision.

In Europe, all eyes are on the ECB meeting on monetary policy on Thursday which may affirm investors' expectation on the first jump rate hike. The benchmark Stoxx Euro 600 Index made a sharp recovery on the last trading day on valuation appeal. The index may look to build on the positive momentum from Friday.

In Asia, currency movement in the wake of increase in US dollar (Yen at 24-year low, index and lock-down in China remain major concerns for investors in near-term. Meanwhile, overall valuations for many markets are attractive relative to past average and provide comfort to investors.

Daily Market Monitor 5-09-2022