Reports

2022-09-14

Daily Market Monitor 14-09-2022

Tadawul Review:

Tadawul All Share Index (TASI) recorded positive closing for the third straight session on Tuesday and a gain of 62 points ‎‎(+0.5%) at 12,084 levels. TASI underwent an initial nervous ‎‎trading period in the first two hours of session after modest positive opening. However, the index started its gradual rise to compensate for its losses and gained 113points from intraday low. In general, 17 out of 20 sectors closed in the green zone, while advance to decline ratio came in at1.8:1. Banks (+0.7%), Materials (+0.4%) and Utilities (+1.6%) sectors contributed the most to the index's rise (+41 points). Stock-wise, Al-Rajhi Bank (+2%), Banque Saudi Fransi ‎‎(+4.2%), and Sipchem (+4%) contributed most to the stability and rise of the index. Alujain Corp and Bawan were the top gainers during the session, up by +4.4% for both. The trading activity witnessed a remarkable improvement in the volume and value of trading by ‎‎+22% and +21% to reach 137mn shares and SAR5.3bn. Negative volatility in international ‎‎markets post release of CPI data in the U.S can have a negative bearing on TASI.

 

 

Market Wrap International:

The global equity markets snapped a four-day rally on above-expected CPI print for Aug-22. The reverberations of the latest inflation data were felt in almost all asset classes and across regions. Dollar gained, Euro gave back intraday gains to close below parity one again against USD, US treasury reversed initial rally, and commodity prices pared gains. The above-expected inflation prints of 8.3% (vs 8.5% last month) came in the backdrop of expectations of softer CPI reading of ‎‎8.1%. The surprise as such does not change investors’ well-entrenched expectations of a 75bps hike in the upcoming FOMC meeting (due on 21st Sep). In the U.S, the benchmark indices lost 3.9-5.2% for the day. Tech and other growth stocks received the major brunt of the selling pressure. 

In Europe, the indices traded in the positive territory for most of the day but presented a completely different picture once US CPI data was released. The benchmark Stoxx Euro 600 Index pared intraday gains of 0.6% to close the session with a loss of 1.5% on Tuesday, reversing a three-day rally. The initial investors' optimism stemmed from plans to roll out a hefty economic support package.

In Asia, trading sessions in the region ended before the release of CPI data in the U.S. Many markets (China, Hong Kong, Korea) returned to trading following a national holiday on Monday and played a catch-up. KOSPI in Korea jumped 2.7% on the latest announcement of export curbs from U.S exports of semiconductor and other chips to China. SENSEX (+0.8%) in India, Topix (+0.3%) in Japan and Shanghai Composite ‎‎(+0.1%) in China also closed positive.

Daily Market Monitor 14-09-2022