Reports

2022-08-31

Daily Market Monitor 31-08-2022

Tadawul Review:

Tadawul All Share Index (TASI) dropped by 75 points (-0.6%) to close at 12,45‏6‏ levels. The index looked to build   momentum at the start of the session on Tuesday and made an intraday high of +57points. However, volatility in global commodity prices forced the index to change its course. Energy (-0.7%) and materials (-0.9%) names, the two key beneficiaries of recent newslfow over supply crunch in Europe, along with banks (-0.6%) were the major drags on the index performance. All in all, trading volumes and value dropped by ‏10‏% and ‏0.6‏% while Advance to Decline ratio came in at 1:2. Software & Services (1.5%), Diversified Financials (0.‏7‏%) and Consumer Durable‏ ‏(0.6%) were the major gainers for the day. TASI is likely remain directionless in coming sessions with conflicting impact of global macro updates.

 

Market Wrap International:

The global equity indices moved in divergent directions on Tuesday following two days of sell-off post Fed Chairman’s Jackson Hole comments on last Friday. The new economic data in the U.S (consumer sentiments, Job Opening) and the latest news flow on energy supplies in Europe provided a lift to indices on both sides of the Atlantic. However, the positivity proved to be short-lived as investors realized strong data makes a stronger case for sustained rate hikes to rein in inflation. U.S treasury yields increased (2-Yr bond touched a multi-year high), while commodity prices slid. In the U.S, the benchmark S&P 500 Index and Nasdaq Composite Index extended losses into 3rd straight session and dropped by 1.1% for both of them, dragged by energy, tech and other growth stocks.

In Europe, the benchmark Stoxx Euro 600 Index gave up intraday gains to close the session with a –0.7% drop. The investors remained cautious ahead of CPI data release for the region (due tomorrow). Country-level benchmarks also underwent a similar pattern.

In Asia, all major equity indices, except for HangSeng in Hong Kong and Shanghai Composite in China for both of them  (-0.4%), moved higher in the range of 0.2-1.2%. Attractive valuation following recent correction and earnings surprises renewed investors' interest. Sensex in India (+2.7%) was a major outperformer on Tuesday led by financials and tech companies. Indices in China and Hong Kong were dragged by investors' nervousness over continuing lock-down measures in parts of China and the release of PMI data (due tomorrow).

Daily Market Monitor 31-08-2022