2023-05-28
Daily Market Monitor 28-05-2023
Tadawul Review:
Tadawul All Share Index (TASI) fell for the fifth day in a row, dropping by 52 points (-0.5%) to close at 11,185 levels. TASI opened the session negatively, by -10 points, and continued volatile throughout the trading session before it dropped to its intraday low by -25 points in the closing auction. In general, 12 out of 20 sectors closed in the red zone, while 102 stocks fell and 107 rose. Banks (-0.8%), Telecom (-2.0%), and Insurance (-1.9%) sectors contributed the most to the index's -44 point fall. Stockwise, Al Rajhi Bank (-0.7%), Saudi Telecom (-2.4%), and Riyad Bank (-2.2%) were the major contributors. The trading activity witnessed a decline in volume and value by -4% and -11%, respectively, to reach 168mn shares and SAR5.0bn in value traded. The index is likely to show some signs of reversal as the index approach the key support of 200 Day Moving Averge after suffering losses in the past five sessions.
The global equity indices bounced back on Friday amid optimism on resolution of debt ceiling amid not so favorable economic data in the U.S. The S&P 500 and Nasdaq Composite rose 1.3% and 2.2% respectively on Friday, erasing most of the losses for the week. Media reports in the U.S suggest the negotiators from the two sides had reconciled differences on many issues and were inching towards the resolutions of the debt limit issue for the next two years. Meanwhile, economic data in the U.S carried two major surprises for the investors. A closely watched inflation gauge, PCE Deflator, showed monthly uptick while the personal consumption data came in stronger than expected. Both data points pointed to a possible further rate hike by the Fed in its upcoming meeting in June.
In Europe, the investors took a cue from the rally in the U.S market and the reported progress of the debt crisis. The Stoxx Europe 600 Index, a key regional benchmark, rose 1.2% on Friday supported by a strong rally in tech and consumer discretionary. Other country level indices too moved higher by 0.7-1.2%.
In Asia, the major indices were trading positive as tech-heavy markets played catch-up to the tech rally in the U.S. TAIEX (+1.3%) was a major outlier as the index received a major push from TSMC and other chip stocks. KOSPI (+0.2%), Shanghai Composite (+0.4%) and SENSEX (+1.0%) were the other major gainers in the region. TOPIX was little changed on Friday.
Daily Market Monitor 28-05-2023
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