Reports

2022-10-02

Daily Market Monitor 2-10-2022

Tadawul Review:

Tadawul All Share Index (TASI) closed positive for the third consecutive session on Thursday and recovered 235 points ‎‎(+2.1%) to close at 11,405 levels, capping the monthly loss at ‎‎878 points (-7.1% MoM: YTD: +0.6%). The index opened on a positive note on the back of higher oil prices and strong momentum in the major global markets. The positivity in the market was visible from the start of the session, which was sustained till the close. In general, 17 out of 20 sectors closed in the green zone, while the advance-to-decline stock ratio came in at 3:1. Banks (+2.7%), Materials (+1.7%), and Energy ‎‎(+2.6%), the three heavyweight sectors for TASI, provided the push (cumulative contribution: 161 points). Stock-wise, Aramco (+2.7%) led the charge, followed by Al Rajhi Bank ‎‎(+1.8%) and the Saudi National Bank (+2.3%). Yanbu Cement and Thob Al Aseel were the top gainers on Thursday, up by ‎‎+10% for both. The trading volume activity increased by +4% DoD to reach 172mn shares, while the trading value decreased by -5% DoD to reach SAR6.4bn. The market may look to further build the positive momentum with the latest announcement of the preliminary budget for the year 2023 also adding to the momentum.

 

 

Market Wrap International:

The global equity indices capped one of the worst monthly performances on a somber note on Friday with nervousness over many of the recent themes (interest rates, currency, recession & geopolitics) still at play. In the U.S, the benchmark indices suffered yet another session of heavy losses to close at levels last seen at the peak of COVID-19. The S&P 500 Index dropped by 1.‏5‏% (only ‏1‏ out of 10 past sessions were positive) while Nasdaq Composite lost ‏1.5‏%. The investors were further spoked by the latest Fed Speak, reiterating resolve to fight inflation with more interest rate hikes.

In Europe, the benchmark Stoxx Euro 600 Index ditched broader trends and managed to close with 1.‏3‏% gains, partially paring losses for the month. The index was already trading at COVID-19 lows which prompted dip buying. The country level indices moved in the same direction with FTSE in the U.K ‎‎(+0.2%) DAX in Germany (+1.2%) and CAC in France ‎‎(+1.‏5‏%).  Pound made further recovery and settled at USD1.12/Pound. In a latest update, S&P has changed te rating outlook for U.K to negative from the previous stable.

In Asia, markets exhibited divergent trends with Hang Seng in Hong Kong (+0.3%, HSBC led recovery) and SENSEX (+‏1.8‏%, market rallied after below expected rate hike announcement) in India outperforming the region. Indices in Japan recorded the highest loss (TOPIX: -1.8%, Nikkei 225 :-1.8%) ). Indices in China (Shanghai Composite: -0.6%), Taiwan (TAIEX: -0.8%) and Korea (KOSPI :-0.7%) also suffered losses.

Daily Market Monitor 2-10-2022