Reports

2023-03-12

Daily Market Monitor 12-03-2023

Tadawul Review:

Tadawul All-Share Index (TASI) closed Thursday's session up ‎‎+53 points (+0.5%) to close at 10,463 levels. TASI opened the session positively, up by 5 points from the previous close, and continued its rise during the first trading hours, reaching its intraday high of +103 points before starting to reduce its profits by 50 points until the end of the session. In general, 14 out of 20 sectors closed in the green zone, while 139 stocks rose and 63 fell. Banks (+0.6%), Energy (+1.2%), and Real Estate (+1.2%) sectors contributed the most to the index's rise of +36 points. Stock-wise, Aramco (+1.2%), Al Rajhi Bank ‎‎(+1.2%), and Bank AlBilad (+1.8%) contributed most to the rise of the index. Trading activity also witnessed a decline in volume and value by 4% for both, to reach 143mn shares and SAR3.9bn. TASI will likely show renewed volatility on the back of fresh stress on the global financial system in the wake of collapse of Silicon Valley Bank in the U.S. over the weekend.

 

 

Market Wrap International:

The global equity indices underwent heightened volatility following the collapse of Silicon Valley Bank (SVB), one of the sizable banks in the U.S and below par economic data. The collapse of SVB has renewed the memories of 2008 Great Financial Crisis (GDC) and has increased the stress on the global financial entities. A significant drop in the U.S treasury yields of 14-28bps across tenures did little to support the investors sentiments. The benchmark S&P 500 and Nasdaq Composite lost 1.5% and 1.8%, respectively, with both indices erasing the gains from the start of the year. All eleven sectors on the S&P 500 closed negative, with real estate (3.25%) having the biggest drop.

In Europe, the benchmark Stoxx Europe 600 Index dropped by 1.4% as the investors closely tracked the updates on SVB. The stress on the listed financial names from the SVB was quite visible as the financials (-3.4%) were the biggest drag on the index. Country level indices in the region also recorded sizable losses of 1.3-1.7%.

Asia painted a similar picture with added pressure from the investors disappointment over reduced possibility of additional economic stimulus measures in China anytime soon and Bank of Japan (BoJ) decision to maintain ultra loose monetary policy. The major indices dropped by 1-3%. Hang Seng (-3%) was the biggest loser in the region followed by Topix (-1.9%).

Daily Market Monitor 12-03-2023