Reports

2023-08-28

Daily Market Monitor 28-08-2023

Tadawul Review:

Tadawul All Share Index (TASI) rose on Sunday by 65 points ‎‎(+0.6%) to close at 11470 levels. TASI opened the session on a positive note, up 19 points from the previous close, and sustained its upward momentum. In general, 16 out of 20 sectors closed in the green zone, while 143 of 223 shares rose and 68 fell. Banks (+0.4%), Materials (+0.6%), and Food and beverages (+1.9%) sectors contributed the most to the index rise. Stockwise, Aramco (+0.4%), Saudi National Bank ‎‎(+0.8%), and Almarai (+2.0%) were the major contributors. The trading activity witnessed a decrease in volume and value by -28% and -23%, respectively, to reach 164mn shares and SAR3.9bn in value traded.

 

 

Market Wrap International:

The U.S. stocks are exhibiting resilience amid mixed signals from Jackson Hole, with Federal Reserve Chair Jerome Powell reaffirming the Fed’s preparedness for further rate hikes if needed. Yet Powell’s remarks seem to lack unanimous support from the board, as Philadelphia Fed President Patrick Harker signaled his preference for maintaining unchanged rates to prevent additional economic pressure, while Austan Goolsbee said the Fed debate is less about whether to hike rates again.

In Europe, Euro-area inflation readings will provide a key data point ahead of September’s highly anticipated European Central Bank’s rate decision. Underlying inflation in the Euro area probably only dipped a touch, which might strengthen arguments for one final rate hike.

In Asia, investors will continue to focus on economic data and other updates from China. Any announcement of new measures will have a magnified impact on investors sentiments. Lowering the stamp duty on stock trades in China will likely have a short-term positive impact on the market. The latest statement from the BOJ governor is likely to be taken positively by the market as it hints at the possibility of continued ultra-loose monetary policy by the central bank.

Daily Market Monitor 28-08-2023