2023-06-05
Daily Market Monitor 5-06-2023
Tadawul Review:
Tadawul All Share Index (TASI) rose on Sunday’s session for the second day, climbing by 207 points (+1.9%) to close at 11,222 levels. TASI opened the session positively, by 78 points, and continued to rise during the session to close at its intraday high. In general, 18 out of 20 sectors closed in the green zone, while 180 stocks rose and 34 fell. Banks (+2.3%), Materials (+2.2%), and Energy (+1.7%) sectors contributed the most to the index's rise by 132points . Stockwise, Al Rajhi Bank (+2.5%), Aramco (+1.7%), and Maaden (+5.2%) were the major contributors. The trading activity witnessed a decline in volume and value of -20% and -13%, respectively, to reach 141mn shares and SAR4.4bn in value traded.
The global equity markets may move sideways in the next few sessions pending important economic data and policy decisions. In the U.S, the market will closely track upcoming ISM and job data to further consolidate views on rate hike decision by the Fed in its mid-June meeting. The latest economic data has sent mixed signals and has added confusion. Meanwhile, the treasury yields are pricing in a clear prospect of rate hike.
In Europe, the monthly industrial growth in Germany for May-23 could highlight the risk of recession in the region. provide clarity on the extent of slowdown in economic activity in the region. The drop in monthly CPI in May for the region is a clear positive and came at a time when the key growth indicators are showing stress from the recent rate hike campaign.
In Asia, all eyes are on China for the possible announcement of a new economic stimulus package to revive economic growth to pre-Covid levels. CPI and export data are the two important indicators for the investors.
Daily Market Monitor 5-06-2023
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