Reports

2022-11-07

Daily Market Monitor 7-11-2022

Tadawul Review:

Tadawul All-Share Index (TASI) closed Sunday's session up ‎‎+82 (+0.7%) to close at 11,521 levels. TASI index opened the session positively, up 122 points. The rise was due to the rise in Brent oil prices (+4.3%) and the major global market indices.‏ ‏TASI continued to rise in the first hours of the session, as it reached an intraday high point, rising by 170 points, before reducing its intraday gains. In general, 14 sectors out of 20 closed in the green zone, while 156 shares rose and 46 fell. Banks (+‏0.6‏%), Materials (+1%), and Energy (+1.6%) sectors contributed the most to the index's rise (+55 points). Stock-wise, Aramco (+1.6%), Saudi National Bank (+1%), and Al-Rajhi Bank (+0.5%) contributed most to the stability and rise of the index. Trading activity also witnessed a decline in volume and value by 18% for both, to reach 114mn shares and SAR4bn‏.‏ The index may look to sustain its recovery amid high intraday volatility.

 

 

Market Wrap International:

The economic data release for the next week has assumed added importance in the backdrop of heightened focus on inflation and interest. The CPI print in U.S, China, Germany, Taiwan and India, preliminary GDP estimate in the U.K, consumer confidence and industrial production data in a number of countries will remain a major focus area of investors. Overall, investors are likely to remain edgy with nervous trading producing magnified volatility in the market in either direction. In the U.S, the fragile investors’ sentiments are tied to CPI reading in particular in order to gauge the future direction of Fed’s policy rate. With most of the results already in the bad, a strong positive closing on Friday will be out to test.

In Europe, all eyes will be on GDP growth data in the U.K where BoE has projected a0.5% decline in 3Q vs an anemic growth of 0.2% in 2Q. With the political crisis in the 3Q and a steep rate hike , the risk of recession in the U.K has grown. 

In Asia, the latest statement from Chinese authorities on continuation of current COVID-19 restriction may dampen the sentiments. However, valuation in HK, Chinese markets remain attractive despite a strong recovery last week and may provide downside protection. For Japan and other countries in the region with weak currency performance of late, the CPI in the U.S will be a major macro driver alongside country specific economic data.

Daily Market Monitor 7-11-2022