Reports

2023-02-23

Daily Market Monitor 23-02-2023

Tadawul Review:

Tadawul All-Share Index (TASI) closed down for the fourth day in a row by -101 points (-1%) and closed at its lowest level since December 27, 2022 (40 trading days) at 10,270. TASI started Tuesday’s session in a negative way and continued its decline for the rest of the session, as it was trading in a range of 136 points. In general, 14 out of 20 sectors closed in the red zone, while 52 stocks rose and 151 fell. Banks (-1.3%), Materials (-0.9%), and Real Estate (-2.2%) sectors were the major drags on the index and contributed a total of -70 points. Stocks-wise, Riyad Bank (-2.7%), Alinma Bank (-2.7%), and SABIC (-1.6%) pulled the index down the most. The trading activity also witnessed a decline in the volume and value of trading by 8% and 3%, respectively, to reach 118mn shares and SAR3.4bn. The drop in oil prices and volatility in international markets may reinforce the negative momentum in TASI in near-term though key technical supports around 10,000-10,200 remain crucial‎.

 

 

Market Wrap International:

There was little respite for global equity markets on Wednesday following three days of consecutive erosion in market value. The minutes of the recent Fed meeting substantiated the edginess among the investors and the spike in treasury yields. The minutes showed a number of Fed officials were reportedly prepared to take interest rates above earlier guidance of 5.1%. In the U.S, the S&P 500 Index fell for the fourth straight session amid intraday volatility. Nasdaq Composite managed to eke out a minor positive return of ‏0.1‏%.

In Europe, the Stoxx Euro 600 Index faced additional headwinds of negative corporate earnings surprises besides the fears of a more hawkish central bank. The index fell 0.3% dragged by mining stocks. Consumer stable, media and telecom were the key outperformers for the day.

Asian markets were particularly under pressure dragged by tech names. Markets reacted to the moves in the U.S treasury yields which rose to fresh multi-year highs. Concerns on currencies in emerging markets and growth outlook on the back of recent moves in interest rates in global markets have forced investors to revisit the investment case for the region. Major indices in the region were down by 0.5-1.7%.

Daily Market Monitor 23-02-2023