Reports

2022-10-23

Daily Market Monitor 23-10-2022

Tadawul Review:

Tadawul All Share Index (TASI) ended Thursday's session with an increase of 169 points (+1.4%), to close at the level of 11,964. TASI opened the session with a slight increase (+6 points) and continued the ascent through the session to end the normal trading hours with +123 points. In the closing auction, TASI added +45 additional points to cross the level of 11,950 and close at one-month high. In general, 18 sectors out of 20 closed in the green zone, while 126 shares rose and 73 shares declined. Banks (+2.2%), Materials (+1.3%), and Telecom (+1.6%), the heavyweight sectors for TASI, provided the push (cumulative contribution: 125 points). Stock-wise, Al Rajhi Bank (+2.3%) and Saudi National Bank (+2.2%) led the charge, followed by Riyadh Bank (+4.6%). Trading activity witnessed an improvement in the volume and value of trading by 8% and 15%, respectively, to reach 141mn shares and SAR5.7bn. TASI may look to breach an important psychological barrier of 12k mark given strong momentum, ongoing result season and supportive backdrop of international markets. 

 

 

 

Market Wrap International:

The global equity indices moved in divergent directions on Friday as earnings season remained in the limelight ahead of the much-awaited Fed decision early next month. The latest media reports on Fed calmed investors' nerves on the likely peak of Fed interest rate. The treasury yields in the U.S retreated from fresh multi-year highs along with CBOE Volatility Index and the US dollar. In the U.S, the S&P 500 Index and Nasdaq Composite jumped ‏2.4‏-2.3% on Friday led by financials and tech stocks.

In Europe, the benchmark Stoxx Euro 600 Index declined by 0.6% on Friday, reversing weekly gains on increased political noise in the U.K and the likely policy action by the central banks in the region. Investors are now expecting a more hawkish interest rate decision in the upcoming meeting of the ECB (due next week). FTSE-100 Index up 0.4% with yield and currency in the U.K rising.

 

In Asia, investors were spoked by high treasury yields in the U.S and continuing overhang from China's zero COVID policy. Except for Shanghai Composite in China ‎‎(+0.1%) and Sensex in India (+0.2%), rest of the major indices in the region dropped. HangSeng in Hong Kong (-‎‎0.4%) and Taiex in Taiwan (-1%) made major headlines. HangSeng fell to its Apr-2009 low. Authorities in Taiwan introduced new short-selling rules to stem the index decline In Japan, Yen bounced back (+1.7%) from a 32-year low on intervention by authorities to stabilize the currency.

 

Daily Market Monitor 23-10-2022