Reports

2023-08-09

Daily Market Monitor 9-08-2023

Tadawul Review:

Tadawul All Share Index (TASI) fell for the ninth day on Tuesday’s session by -28 points (-0.2%) to close at 11,244 levels. TASI opened the session positively, up 30 points from the previous close and showing initial upward momentum in the first hour of trading. However, as the session continued, TASI reversed its gains and steadily declined,closing at its lowest levels of the day. In general, 11 out of 20 sectors closed in the red zone, while 99 of 223 shares fell and 114 rose. Banks (-0.5%), Health care equipment and services (-‎‎4.1%), and Materials (-0.9%) sectors contributed the most to the index's -44-point fall. Stockwise, Saudi National Bank (-‎‎2.2%), Maaden (-2.9%), and ACWA Power (-1.7%) were the major contributors. The trading activity witnessed a decline in volume by -19% to reach 220, and the value remained unchanged at SAR6.4bn value traded. TASI has lost cumulatively 662 points in the last nine sessions.

 

 

Market Wrap International:

The global equity markets faced a fresh bout of volatility on the back of adverse economic data in China, corporate rating downgrade in the U.S and surprised tax measures in Italy. The concerns on global economic growth have deepened due to weak trade data in China. In the U.S, the S&P 500 and Nasdaq Composite dropped by 0.4% and 0.8% respectively , primarily dragged by banks and tech. In a latest development, Moody’s investors services downgraded the rating of small banks in the U.S. The rating agency has further highlighted the risk of more downgrades of rating for medium and large banks in the country.

In Europe, Italy introduced new tax measures in a bid to force banks to share the gains from higher interest rates. The proceeds from the new tax will be used for financing other social initiatives by the government. The new measure further dented the investors’ sentiment which was already hit by the release of weak economic data in China. The Stoxx Europe ‎‎600 Index fell by 0.2%. Country level indices too dropped in the range of 0.4-1.1%.

In Asia, the trade data in China came in worse than expected and accentuated investors pessimism regarding the growth target set by the authorities. All major equity indices in the region faced selling pressure. Hang Seng (-1.8%) and CSI 300 ‎‎(-0.3%) led the decline. Equity indices in Japan\ , however, were exceptions and jumped 0.4-0.7%.

Daily Market Monitor 9-08-2023