Reports

2022-09-11

Daily Market Monitor 11-09-2022

Tadawul Review:

Tadawul All Share Index (TASI) declined by 30 points (-‎‎0.25%) on Thursday, to close at 11834 due to volatility in oil prices and international markets. The index opened positive but struggled to sustain the positive momentum and struggled to sustain the positive momentum. The index declined to its intraday low of ‏138‏ points before the late hour recovery saw the index close the session with minor loss of 29points. 5 out of 20 sectors closed in the red zone, and while advance to decline ratio came in at a healthy 1.8:1. The usual sectors, specifically banking sectors (-0.2%), energy (-0.9%) and basic materials (-0.2%) were the major drags on the index. Trading activity also witnessed a decline in the amount and value of trading by -4% and -3%, respectively. With stability in oil prices and strong closing of major global indices over the weekend, TASI may see a reversal of investor sentiment. The index has already dropped by 6% from its mid-Aug high and currently trades 3% below its 200DMA.

 

 

Market Wrap International:

The global equity indices carried the positive momentum into the second straight session on Friday with below expected CPI in China and the decline in dollar index providing a much-needed impetus. In the U.S, the major indices jumped ‏2.1-1.2‏% in a broad-based rally which saw all eleven listed sectors in S&P 500 index, led by energy and communication, recording positive closings. The dollar index retreated by ‏0.7‏% following a jumbo rate hike by ECB while 10-year bond yield also declined.

In Europe, the Stoxx Euro 600 Index jumped by 1.5% on session close with Euro consolidating its recovery above parity against USD. The investors have shrugged off negativity from ongoing energy crisis and inflation and opted for bargain hunting particularly in energy, mining, and financials. The country level benchmarks too recorded gains of more or less similar magnitude.

In Asia, HangSeng Index stole the show in the region with a sizable 2.‏7‏% jump on Friday led by real estate developers. Shanghai Composite in China also jumped 0.8% for the day. Both indices were influenced by below expected CPI data in China which has rekindled hopes of more aggressive support for the economy and property developers. Elsewhere, indices in Japan (Topix: +0.4%), and India (Sensex :+0.2%) also surged. Markets in Korea and Taiwan were closed for a national holiday.  

 

Daily Market Monitor 11-09-2022