Reports

2022-10-04

Daily Market Monitor 4-10-2022

Tadawul Review:

Tadawul All Share Index (TASI) recorded a positive closing for the fifth straight session on Monday and a gain of 121 points ‎‎(+1.1%) at 11,608 levels. The impact of the rise in Brent oil prices had a significant barring on the rise of the TASI for Monday's session. TASI started the session positively and reached its intraday high of +160 points. However, selling pressure forced the bulls to retreat a little as gains were reduced to only 84 points at the end of regular trading hours. Then the index rose an additional 22 points at the closing auction. In general, all of the 20 sectors closed in the green zone, while 165 stocks rose and 38 fell. The Banks (+1.3%), Materials (+1.4%), and Health Care Equipment & Svc (+2.1%) sectors contributed the most to the index's rise (+82 points). Stock-wise, Riyad Bank (+4.3%), Saudi National Bank (+1.3%), and Al Rajhi Bank (+0.6%) contributed most to the rise of the index. The trading activity witnessed a remarkable improvement in the volume and value of trading by 14% and ‎‎24%, respectively, to reach 185mn shares and SAR6.5bn. Given strong oil prices and the upcoming result season, the backdrop for the Index to recover further ground remains.

 

 

Market Wrap International:

The global equity indices shrugged off significant losses suffered in last month to start a new month on a positive note. The decline in bond yields, encouraging policy review in the U.K on a generous package and recovery in oil prices were the key drivers. In the U.S, the yields on 2-yr and 10-yr bonds dropped by ‏0.6‏% for both and provided a much-needed relief to investors. The benchmark indices staged recovery with S&P ‎‎500 and Nasdaq Composite rising by 2.6/2.3%. Energy (5.8%), materials and Utilities led the recovery in S&P 500. Tesla’s quarterly sales number missed expectations with stock coming in for beating.

In Europe, announcement of partial reversal in the generous fiscal package by the new government in the U.K spurred further recovery in Pound and improved sentiment. The benchmark Stoxx Euro 600 Index sustained its recovery into the second straight session (+0.8%) with energy and mining names in the lead. Financial sector was a big drag due to fresh concerns on the overall health of the banking sector, particularly on Credit Suisse and Deutshe.

In Asia, indices continued the slide into the new month. Markets in China and Korea were closed for trading on Monday. Indices in Taiwan (TAIEX:-0.9%), India (SENSEX: -‎‎1.1%) and Hong Kong (HangSeng: -0.8%) closed negative . Japan (Nikkei 225:1.1%) managed to outperform the region.

Daily Market Monitor 4-10-2022